• USD/MXN rose on Tuesday as prospects for fewer U.S. rate cuts lifted the dollar.
• The US dollar has surged in recent weeks, led by expectations of a less dovish Federal Reserve, as inflation remains over the central bank's annual target of 2%.
• Markets are also bracing for US President-elect Donald Trump's plans of less regulation, tax cuts, tariff increases, and stricter immigration, which are likely to be both pro-growth and inflationary.
• Mexico's peso weakened 1.07 % on the day, and is on track for its worst year since 2008.
• Immediate resistance is located at 20.901 (23.6%fib), any close above will push the pair towards 21.000(Psychological level).
• Support is seen at 20.641(38.2%fib) and break below could take the pair towards 20.424(50%fib).
Recommendation: Good to buy around 20.800, with stop loss of 20.450 and target price of 21.000
