FxWirePro: USD/MXN heads deeper into bear territory, 38.2% fibonacci eyed

• USD/MXN slipped sharply lower on Tuesday as the dollar extended its pullback, with markets finding relief in the Israel-Iran ceasefire.

• The truce eased geopolitical concerns, boosting risk appetite and supporting the Mexican peso.

• All attention is now firmly on Fed Chair Jerome Powell’s testimony before Congress, as markets look for clues on the Federal Reserve’s interest rate outlook and potential timing of future policy moves.

• Fed Chair Jerome Powell will appear before Congress later on Tuesday and, so far, has been more cautious about a near-term easing.

•  Immediate resistance is located at 19.099(50%fib), any close above will push the pair towards 19.350(61.8%fib).

• Support is seen at 18.852(38.2%fib) and break below could take the pair towards 18.633(Lower BB).

Recommendation: Good to sell around 19.000 with stop loss of 19.300 and target price of 18.700