• USD/MXN strengthened on Friday as investors digested US payrolls data and dovish Banxico's policy verdict
• The Labor Department report showed the U.S. economy added 143,000 jobs in January, below the expected 170,000. The unemployment rate stood at 4%, better than the anticipated 4.1%.
• Banxico announced a 50-basis-point cut to its benchmark interest rate, lowering it to 9.5%. This marks a faster pace in its easing cycle, with the central bank indicating potential future cuts as inflation continues to cool.
• On the data front, Mexico's annual inflation rate slowed to 3.59% in January, slightly more than anticipated, according to official data.
• At GMT 17:48, the pair was trading up 0.68% at 20.590.
• Immediate resistance is located at 20.675 (50%fib), any close above will push the pair towards 20.975Higher BB).
• Support is seen at 20.385(50%fib) and break below could take the pair towards 20.194(Lower BB).
Recommendation: Good to buy around 20.500 with stop loss of 20.215 and target price of 20.900
