• The USD/MXN initially dipped but recovered ground as investors looked out for more developments on the tariff front.
• Trump said Monday that automobile tariffs were coming soon but suggested some levies may be delayed or exempted.
• Rising optimism that the tariffs won't be as bad as feared, however, has helped the greenback stabilize in the past few weeks.
• Investors now await the U.S. Personal Consumption Expenditures data, due on Friday, for hints on further Fed's policy moves.
• At GMT 17:45, the pair was trading up 0.35% at 20.098
• Immediate resistance is located at 20.211(50%fib), any close above will push the pair towards 20.392(38.2%fib).
• Support is seen at 19.940(61.8%fib) and break below could take the pair towards 19.815(Lower BB).
Recommendation: Good to buy around 20.000, with stop loss of 19.800 and target price of 20.200
