FxWirePro: USD/MXN sees modest bounce, downside risks remain

• USD/MXN edged higher on Tuesday as greenback gained some ground as investors  digested US data, rising mideast tensions.

•Data on Tuesday showed U.S. retail sales dropped more than expected in May, while factory production barely rose last month.

• U.S. President Donald Trump expressed a desire for a "real end" to the nuclear standoff with Iran and suggested he may dispatch senior officials for direct talks, as the Israel-Iran air conflict stretched into its fifth day.

• Trump said he might send U.S. Middle East Envoy Steve Witkoff or Vice President JD Vance to meet with Iranian officials.

• Meanwhile, the Federal Reserve is set to announce its policy decision on Wednesday, followed by a press conference from Chair Jerome Powell.

•  Immediate resistance is located at 19.909 (38.2%fib), any close above will push the pair towards 19.309(50%fib).

• Support is seen at 18.837 (23.6%fib) and break below could take the pair towards 18.740(Lower BB).

Recommendation: Good to sell around 19.000 with stop loss of 19.250 and target price of 18.700