• USD/MXN dipped on Wednesday as temporary reprieve in Sino-U.S. trade tensions and weaker dollar boosted Mexican peso.
•The greenback weakened after data showed U.S. consumer inflation rose only moderately in April, reinforcing expectations of potential Fed rate cuts.
• With the U.S. inflation figures for April released, attention now turns to the upcoming retail sales data, set to be published on Thursday . This report will offer critical insights into consumer spending patterns and the overall health of the U.S. economy.
• Global financial markets opened the week on a positive note after the U.S. and China agreed to temporarily reduce tariffs. The U.S. announced a cut to "de minimis" tariffs on low-value Chinese imports, easing trade tensions.
• Immediate resistance is located at 19.631(38.2%fib), any close above will push the pair towards 19.795(Higher BB).
• Support is seen at 19.311(Daily low) and break below could take the pair towards 19.121(23.6%fib).
Recommendation: Good to sell around 19.400 with stop loss of 19.900 and target price of 19.100
