• USD/MXN rose sharply on Wednesday after China and the European Union slapped new trade barriers on U.S. goods, stoking worries that an intensifying trade war.
• In response to U.S. tariffs that took effect on Wednesday, Beijing announced its own trade restrictions will begin on Thursday, with the European Union's measures set to take effect next week..
• The European Union will implement its first countermeasures against U.S. President Donald Trump's tariffs next week, joining China and Canada in retaliation and intensifying the global trade conflict.
The approval came on the same day that Trump's reciprocal tariffs on the EU and numerous countries took effect, including hefty 104% duties on China.
• At GMT 15:54, the pair was trading up 0.64 percent at 20.962
• Immediate resistance is located at 20.578(38.2%fib), any close above will push the pair towards 20.898(23.6%fib).
• Support is seen at 20.394 (50%fib) and break below could take the pair towards 20.071(61.8%fib).
Recommendation: Good to buy around 20.900, with stop loss of 20.500 and target price of 21.400
