• USD/MXN edged higher on Tuesday as dollar rebounded after positive U.S. data suggested the Federal Reserve would likely be cautious in cutting interest rates.
•Data showed, U.S. job openings rose to 8.098 million in November, beating forecasts and indicating a stable labor market, while services sector activity picked up in December..
• Following the data, the U.S. rate futures market has priced in a 93% chance of a pause in rate cuts this month, and a 6.9% probability of easing.
• At GMT 17:31, the pair was trading up 0.10% at 20.324.
• Immediate resistance is located at 20.392 (38.2%fib), any close above will push the pair towards 20.573(23.6%fib).
• Support is seen at 20.259(50%fib) and break below could take the pair towards 20.212(50%fib).
Recommendation: Good to buy around 20.250, with stop loss of 20.100 and target price of 20.700
