FxWirePro: USD/ MXN uptrend gains momentum on broad USD strength, Trump comments

• USD/ MXN strengthened on Monday as the U.S. dollar staged a sharp rally against emerging economy currencies  .

.•The dollar rose after President-elect Donald Trump urged BRICS nations over the weekend not to support or create alternatives to the U.S. dollar, threatening 100% tariffs for defiance.

.• Mexico's economic calendar is light this week, with only speeches from the finance minister and central bank head scheduled for Thursday.

.• Attention is now focused on U.S. data set to be released this week, particularly November's nonfarm payrolls report. Comments from Federal Reserve Chair Jerome Powell, expected on Wednesday, will also be closely watched.

•  Immediate resistance is located at 20.599 (23.6%fib), any close above will push the pair towards 20.782 (Nov 27th high).

•  Support is seen at 20.365(38.2%fib) and break below could take the pair towards 20.309 (50%fib).

 Recommendation: Good to buy around 20.400, with stop loss of 20.200 and target price of 20.750