• USD/MXN extended downside on Tuesday as U.S. dollar weakened on Federal Reserve's caution over the US economy
• U.S. Federal Reserve officials on Monday addressed the recent U.S. credit rating downgrade and volatile market conditions with caution, emphasizing the challenges of steering monetary policy amid ongoing economic uncertainty.
• On Friday, Moody’s downgraded the U.S. government’s credit rating by one notch, citing growing concerns over rising deficits and unsustainable interest costs. It was the final major ratings agency to strip the U.S. of its top-tier sovereign credit rating.
• Investors awaited further comments from Federal Reserve officials, with traders currently expecting at least two 25-basis-point rate cuts from the Fed by the end of 2025.
• Immediate resistance is located at 19.633(38.2%fib), any close above will push the pair towards 19805(Higher BB).
• Support is seen at 19.230(Lower BB) and break below could take the pair towards 19.127(23.6%fib).
Recommendation: Good to sell around 19.300 with stop loss of 19.600 and target price of 19.100
