• USD/MXN initially dipped but regained ground as investors remained cautious, hoping for any signs of relief from the ongoing global trade war that is dampening growth prospects.
• Mexico did not completely rule out a possibility of retaliatory tariffs. The possible escalation of a trade scuffle between the U.S. and China also kept investors on edge.
• Investors found some reassurance as leaders from Japan, Indonesia, Vietnam, Israel, and other countries signaled their willingness to negotiate with the U.S.
• Investors are now awaiting the release of minutes from the U.S. Federal Reserve's latest policy meeting on Wednesday for further insights into the potential direction of rate cuts.
• Immediate resistance is located at 20.744(38.2%fib), any close above will push the pair towards 21.006(23.6%fib).
• Support is seen at 20.511(50%fib) and break below could take the pair towards 20.319(61.8%fib).
Recommendation: Good to buy around 20.600, with stop loss of 20.300 and target price of 21.000
