• USD/MXN dropped sharply on Monday following reports that Donald Trump would refrain from imposing blanket trade tariffs on his first day back as U.S. president.
• Trump will be sworn in at 1700 GMT and is widely expected to swiftly sign a series of executive orders on immigration, energy, and trade tariffs.
• Trump recently had indicated that he would sign "all necessary documents" immediately after his inauguration to impose 25% tariffs on Mexico and Canada.
• At GMT 14:44, the pair was trading down 1.02% at 20.540.
• Immediate resistance is located at 20.654 (38.2%fib), any close above will push the pair towards 20.868(23.6%fib).
• Support is seen at 20.486(50%fib) and break below could take the pair towards 20.308(61.8%fib).
Recommendation: Be on sidelines
