• USD/MXN strengthened on Monday as Mexico's peso weakened following a U.S.-Colombia trade spat, reigniting concerns about the impact of Trump's proposed tariffs on Mexico..
• Mexico's peso is highly sensitive to tariff news, as 80% of the country's exports go to the U.S.
• The dispute underscores how tariff uncertainty has affected the outlook for emerging markets, intensifying challenges from economic instability and the possibility of prolonged high U.S. interest rates.
• At GMT 14:58, the pair was trading up 2.39% at 20.739.
• Immediate resistance is located at 20.885 (23.6%fib), any close above will push the pair towards 21.035(Higher BB).
• Support is seen at 20.634(38.2%fib) and break below could take the pair towards 20.452(50%fib).
Recommendation: Good to buy around 20.650 with stop loss of 20.450 and target price of 21.000
