• USD/MXN climbed on Wednesday, driven by expectations of prolonged high U.S. interest rates and renewed concerns over President-elect Donald Trump's tariff plans, which strengthened the dollar.
• A media report showed U.S. President-elect Donald Trump may declare a national economic emergency to justify universal tariffs, boosting the already rising dollar index.
• Investors will now assess U.S. non-farm payrolls data on Friday for more clues on the Federal Reserve's monetary policy trajectory in 2025..
• At GMT 17:19, the pair was trading up 0.28% at 20.379.
• Immediate resistance is located at 20.545 (38.2%fib), any close above will push the pair towards 20.887(23.6%fib).
• Support is seen at 20.274 (50%fib) and break below could take the pair towards 20.000(Psychological level).
Recommendation: Good to buy around 20.380, with stop loss of 20.200 and target price of 20.750
