FxWirePro: USD/ MXN rises on US tariff threat, good to buy on dips

• USD/ MXN rose sharply on    Tuesday  as the dollar's  rallied     after U.S. President-elect Donald Trump pledged tariffs on all imports from Canada and Mexico.

• Trump, who is set to take office on January 20, 2025, announced he would impose a 25% tariff on imports from Canada and Mexico unless they take action to curb drugs and migrants crossing the border—a move that could potentially violate existing free-trade agreements.

.• Investors now await the release of minutes from the Federal Reserve's November meeting, the odds of a 25-basis point rate cut in December currently stand at almost 60%.

.•Mexico's central bank (Banxico) policy meeting  are set to be released on Thursday. At GMT 12:19, Mexico's peso   was up 0.82% at 20.499 against the dollar.

•  Immediate resistance is located at 20.536 (23.6%fib), any close above will push the pair towards 20.761 (Daily high).

•  Support is seen at 20.286(38.2%fib) and break below could take the pair towards 20.080 (50%fib).

 Recommendation: Good to buy around 20.400, with stop loss of 20.200 and target price of 20.650