• USD/MXN climbed on Monday as gains were driven by blowout U.S. jobs report underscored the strength of the US economy.
• Friday's data showed unexpected acceleration in U.S. job growth for December, with the unemployment rate dropping to 4.1%.
• Markets were now no longer fully pricing in even one rate cut from the Fed in 2025, down from roughly two quarter-point cuts priced at the start of the year.
• At GMT 15:42, the pair was trading up 0.40% at 20.788.
• Immediate resistance is located at 20.860 (23.6%fib), any close above will push the pair towards 20.977(Higher BB).
• Support is seen at 20.700(Daily low) and break below could take the pair towards 20.584(38.2%fib).
Recommendation: Good to buy around 20.750, with stop loss of 20.200 and target price of 21.000
