• USD/MXN firmed on Wednesday, on relief after U.S. President Donald Trump temporarily suspended tariffs on Mexico and Canada.
• Trump lifted tariffs on Mexico and Canada for 30 days after the countries reached border security agreements.
• Trump's tariff threats have kept investors on edge, clouding growth prospects for EM economies already facing fiscal challenges.
• Markets will watch for changes in Mexico's monetary policy as the central bank meets later this week amid the tariff backdrop.
• Immediate resistance is located at 20.790(Jan 28th high), any close above will push the pair towards 20.881(382%fib).
• Support is seen at 20.588(50%fib) and break below could take the pair towards 20.488(50 SMA).
Recommendation: Good to buy around 20.600 with stop loss of 20.200 and target price of 21.000
