• USD/MXN strengthened on Monday as peso weakened after Mexico’s annual inflation accelerated roughly in line with economists’ forecasts in early February remaining close to the Banxico target.
• Official data released on Monday showed that consumer prices increased by 3.74% in the first two weeks of the month compared to the same period last year.
• Core inflation, which excludes volatile items like food and fuel and is closely monitored by the central bank, stood at 3.63%.
• At GMT 16:17, The greenback was last trading up 0.14% to 20.432 against Peso.
• Immediate resistance is located at 20.487 (50%fib), any close above will push the pair towards 20.838(38.2%fib).
• Support is seen at 20.83(Feb 26th low) and break below could take the pair towards 20.148(61.8fib)
Recommendation: Good to buy around 20.300 with stop loss of 20.200 and target price of 20.550
