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FxWirePro: USD/ MXN drops to intra-day low, but the bias remains bullish

• 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

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