• USD/MXN drifted lower on Friday as investors were caught off guard by U.S. President Donald Trump's latest unexpected trade announcement.
• Global markets were shaken by Trump’s Truth Social announcement recommending a 50% tariff on all European Union goods starting June 1..
• This announcement immediately sparked renewed tariff fears, reversing the easing seen in recent weeks after the U.S. struck trade deals with partners like the United Kingdom and China.
• Risk sentiment remained fragile as markets grappled with the long-term fiscal impact of President Trump’s tax overhaul, which is expected to increase the U.S. debt by a massive $3.8 trillion over the next ten years.
• At GMT 16:56, the pair was trading up 0.15 percent at 19.281
• Immediate resistance is located at 19.483(38.2%fib), any close above will push the pair towards 19.627(50%fib).
• Support is seen at 19.229(23.6%fib) and break below could take the pair towards 19.000(Psychological level).
Recommendation: Good to sell around 19.300 with stop loss of 19.600 and target price of 19.100
