• USD/MXN dipped on Monday as US dollar weakened following an unexpected sovereign credit downgrade.
• The dollar weakened after Moody’s downgraded the United States’ credit rating late Friday, lowering it from a top-tier ‘Aaa’ to ‘Aa1.
• The ratings agency cited concerns over the nation's ballooning $36 trillion debt and interest payments, which it said are significantly higher than those of similarly rated sovereigns.
• Looking ahead, all eyes are on Mexico’s first-quarter GDP figures, due later this week, with preliminary estimates pointing to a 0.7% year-on-year expansion in April.
• Immediate resistance is located at 19.615(50%fib), any close above will push the pair towards 19.685 (May 5th high)
• Support is seen at 19.370(38.2%fib) and break below could take the pair towards 19.272(Lower BB).
Recommendation: Good to sell around 19.400 with stop loss of 19.900 and target price of 19.100
