USD/MXN climbs as market sentiment brightens on US-EU deal

• USD/MXN rose on Monday as dollar was lifted by a trade agreement between the U.S.and the EU.

• Over the weekend, U.S. President Donald Trump and the European Commission reached a trade agreement that imposed a 15% tariff on European Union goods—significantly lower than the initially threatened 30%.

• The move helped ease market fears of a full-scale trade war between two of the world’s largest economic blocs.

• This week, U.S. economic data, including the closely watched non-farm payrolls report, will be in focus as investors gauge how far the optimism extends.

.• Meanwhile, the Federal Reserve is set to announce its policy decision on Wednesday and is widely expected to leave interest rates unchanged.

•  Immediate resistance is located at 18.890(38.2%fib), any close above will push the pair towards 19.000(Psychological level).

• Support is seen at 18.657 (SMA 20) and break below could take the pair towards 18.968(Lower BB).

Recommendation: Good to buy around 18.700 with stop loss of 18.000 and target price of 19.200