• USD/MXN steadied on Monday as markets braced for a more gradual pace of U.S. Federal Reserve rate cuts.
•The Fed is widely expected to reduce rates by 25 basis points on Wednesday, but market focus is shifting towards the outlook for 2025, with a more gradual approach to rate cuts anticipated.
•CME's FedWatch tool suggests that a rate cut in January is unlikely, which could lend further strength to the dollar.
• At GMT 16:25, The dollar was up 0.31% against the dollar Mexico's peso at 20.183
• Immediate resistance is located at 20.389 (38.2%fib), any close above will push the pair towards 20.611(Dec 2nd high).
• Support is seen at 20.082(50%fib) and break below could take the pair towards 20.010 (LowerBB).
Recommendation: Good to buy around 20.150, with stop loss of 20.000 and target price of 20.300
