• USD/MXN eased on Wednesday as investors focused on interest rate decisions from the U.S. Federal Reserve.
• The Federal Reserve is widely anticipated to implement a 25-basis-point rate cut later on Wednesday, but most attention will be on its outlook for the future interest rate path in 2024.
• In an up-and-down session, the pair hit high at 20.206 in early trading then dipped towards 20.120.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 20.450 evel.
• Immediate resistance is located at 20.291 (38.2%fib), any close above will push the pair towards 20.428(Dec3rd high).
• Support is seen at 20.116(38.2%fib) and break below could take the pair towards 19.996 (LowerBB).
Recommendation: Good to buy around 20.100, with stop loss of 19.950 and target price of 20.350
