• USD/MXN strengthened on Friday as stronger greenback and downbeat Mexico GDP data weighed on peso.
• The U.S. dollar strengthened against its counterparts as investors adjusted their positions before the weekend.
• Mexico's economy saw its largest quarterly contraction since 2021, as domestic demand and private investment weakened amid growing tensions with its top trade partner.
• GDP fell 0.6% in the last quarter of the year, matching earlier estimates. Annual growth was 0.5%, slightly below the initial 0.6% estimate, according to final data released Friday.
• Immediate resistance is located at 20.451 (50%fib), any close above will push the pair towards 20.636(38.2%fib).
• Support is seen at 20.258(61.8%fib) and break below could take the pair towards 20.155(Lower BB)
Recommendation: Good to buy around 20.400 with stop loss of 20.200 and target price of 20.800
