• USD/ MXN declined on Thursday as Mexican peso recovered on hopes of easing Mexico-U.S. tensions.
•The Mexican peso rebounded after U.S. President-elect Donald Trump described his conversation with Mexico's President Claudia Sheinbaum as wonderful following his earlier threat to impose tariffs on Mexico.
.• The peso is still around 20% weaker this year following Trump’s threat of a 25% tariff on Mexican imports unless Mexico took stronger measures against illegal immigration and drug trafficking.
.• Broad trade was light as U.S. stock and bonds markets were shut for the Thanksgiving holiday.
• At GMT 16:19, Mexico's peso was down 0.74% against the dollar at .
• Immediate resistance is located at 20.636 (23.6%fib), any close above will push the pair towards 20.698 (Higher BB).
• Support is seen at 20.367(38.2%fib) and break below could take the pair towards 20.161(50%fib).
Recommendation: Good to buy around 20.400, with stop loss of 20.150 and target price of 20.850
