FxWirePro: USD/MXN claws back some losses but recovery likely muted

•USD/MXN initially dipped but later trimmed losses as   markets assessed  U.S. tax policy and eyed trade negotiations.

•Markets were watching for progress on Trump’s tax-cut and spending plans, as Senate Republicans faced difficulties in pushing the legislation through.

•  Investors remained focused on global trade developments as the July 9 deadline for Trump’s proposed tariffs approached. Reports suggested India might finalize a trade agreement within the week, while negotiations with Japan faced setbacks after Trump threatened increased tariffs.

• U.S. economic data showed that manufacturing stayed in contraction in June, according to the Institute for Supply Management (ISM).

•Meanwhile. In the first labor report of the week, JOLTS data showed job openings rose by 374,000 to 7.769 million in May, but a decline in hiring pointed to a possible cooling in the job market.

Immediate resistance is located at 18.906 (June 30th high), any close above will push the pair towards 19.068(38.2%fib).

• Support is seen at 18.677(23.6%fib) and break below could take the pair towards 18.582(Lower BB).

Recommendation: Good to sell around 18.750 with stop loss of 19.100 and target price of 18.500