• USD/MXN traded flat on Tuesday as investors observed the second day of discussions between the United States and China
• In London, officials from the two biggest economies in the world were attempting to diffuse a conflict that had expanded from tariffs to limits on rare earths.
• Markets are hoping for positive outcomes from the negotiations, as ongoing uncertainty from Trump’s shifting tariff policies and unstable U.S.-China relations have weighed heavily on economic growth, disrupted global supply chains, and shaken investor confidence.
• This week, investors will be focused on the May consumer price index report from the United States, which is coming on Wednesday.
.• The data might provide light on the impact of tariffs, with investors concerned about potential spikes in inflation ahead of the Fed's policy meeting next week.
• Immediate resistance is located at 19.105(June 9th high), any close above will push the pair towards 19.219(38.2%fib).
• Support is seen at 19.019 (23.6%fib) and break below could take the pair towards 18.968(Lower BB).
Recommendation: Good to sell around 19.050 with stop loss of 19.250 and target price of 18.700
