FxWirePro: USD/MXN neutral in the near-term, scope for downward resumption

•USD/MXN traded in tight range  on Wednesday as investors monitored U.S. trade developments ahead of President Donald Trump's July tariff deadline..

• Investors stayed cautious after Trump ruled out extending the trade deal deadline. Talks with Japan remained uncertain, while a deal was expected with India and finalized with Vietnam..

•  Investors also eyed progress on Trump’s $3.3 trillion tax and spending bill, which heads to the House. The bill aims to cut taxes, reduce social programs, and increase the national debt.

• On the data front, the ADP report showed private payrolls fell by 33,000 in June, missing expectations of a 95,000 gain, following a revised 29,000 increase in May.

•The data precedes Thursday's government payrolls report, though the two reports show little correlation.

Immediate resistance is located at 18.793 (38.2%fib), any close above will push the pair towards 18.909(50%fib).

• Support is seen at 18.650(23.6%fib) and break below could take the pair towards 18.569(Lower BB).

Recommendation: Good to sell around 18.750 with stop loss of 19.100 and target price of 18.500