• USD/MXN slipped lower on Thursday as investors were broadly cautious as they returned from the New Year's Day holiday.
• Investors remain focused on the outlook for slower and more limited rate cuts from the Fed compared to other major central banks in the year ahead.
• U.S. President Donald Trump's threatened global tariffs, if implemented, are expected to impact global trade and drive inflation, particularly affecting countries like Mexico.
• At GMT 16:15, the dollar was up 0.66% against the dollar Mexico's peso at 20.193
• Immediate resistance is located at 20.900 (23.6%fib), any close above will push the pair towards 21.000(Psychological level).
• Support is seen at 20.600(38.2%fib) and break below could take the pair towards 20.883(LowerBB).
Recommendation: Good to buy around 20.600, with stop loss of 20.400 and target price of 20.900
