FxWirePro: USD/MXN extends drop, faces 23.6% fib support

• USD/MXN dipped on Wednesday as the Mexican peso gained traction ahead of the upcoming monetary policy statement from Banxico.

• Banxico is set to hold its closely watched monetary policy meeting on Thursday, with analysts widely anticipating a 50-basis-point rate cut.

• Analysts see the potential rate cut as part of a broader shift toward supporting economic growth amid slowing domestic demand and subdued inflationary pressures..

• Private employers added just 37,000 jobs in May—the smallest increase since March 2023—following a downward revision of April’s gain to 60,000.

• Investors will also closely scrutinize the central bank’s statement and forward guidance for signals on whether additional cuts could follow in the coming months.

•  Immediate resistance is located at 19.234(38.2%fib), any close above will push the pair towards 19.334(June 23rd high).

• Support is seen at 18.863(23.6%fib) and break below could take the pair towards 18.703(Lower BB).

Recommendation: Good to sell around 19.000 with stop loss of 19.350 and target price of 18.700