• USD/MXN strengthened on Wednesday as peso weakened as investors exercised caution and looked out for more developments on the U.S. tariff front.
• Global markets gained this week as Trump hinted not all levies would take effect on April 2, with some exemptions, but remained firm on auto tariffs.
• Uncertainty looms ahead of the April 2 deadline as Trump’s executive order imposes a 25% tariff on trades with the U.S. for countries buying oil or gas from Venezuela.
• Banxico's decision is expected this week, with most economists forecasting a 50 basis point cut in the benchmark lending rate.
• Immediate resistance is located at 20.1182(50%fib), any close above will push the pair towards 20.370(38.2%fib).
• Support is seen at 19.985(61.8%fib) and break below could take the pair towards 19.787(Lower BB).
Recommendation: Good to buy around 20.100, with stop loss of 20.000 and target price of 20.200
