FxWirePro: USD/MXN downside pressure builds, key support level in focus

• USD/MXN dipped on Thursday as the dollar attracted selling after soft US economic data.   .
• The latest labor market data showed that initial jobless claims in the U.S. increased for the week ending May 24, indicating a potential softening in the labor market..

• A second reading from the Commerce Department showed gross domestic product contracted 0.2% in the first quarter.

• Meanwhile, Investors are closely monitoring the progress of a significant tax cut and spending bill currently moving through the U.S. Congress.

• The potential rise in debt levels is raising concerns about fiscal sustainability and could influence market sentiment and investor confidence in the near term.

•  Immediate resistance is located at 19.484(38.2%fib), any close above will push the pair towards 19.631(May 13th high).

• Support is seen at 19.184 (23.6%fib) and break below could take the pair towards 19.056(Lower BB).

Recommendation: Good to sell around 19.350 with stop loss of 19.500 and target price of 19.100