FxWirePro: USD/MXN slips as trade optimism lifts emerging market currencies

• USD/MXN edged lower on Wednesday as optimism over a potential more trade deals boosted the Mexican peso.

• The United States finalized a trade agreement with Japan on Tuesday, which includes a reduction in steep import tariffs on Japanese goods. As part of the deal, Tokyo committed to a $550 billion package comprising investments and loans directed toward the U.S. economy.

• Tokyo avoided harsh new U.S. tariffs on autos and other goods by agreeing to a $500 billion package of investment and loans destined for the United States   marking the most substantial trade agreement since President Trump’s market-shaking “liberation day” tariff declaration.

• The fresh wave of trade optimism extended beyond major markets and spread across emerging markets globally, bolstering risk appetite and lifting Latin American currencies.

•  Immediate resistance is located at 18.700(SMA 20), any close above will push the pair towards 18.912(38.2%fib).

• Support is seen at 18.513(23.6%fib) and break below could take the pair towards 18.442(Lower BB).

Recommendation: Good to sell  around 18.550 with stop loss of 18.700 and target price of 18.000