FxWirePro: USD/MXN rises on investor fears over trade war impact on peso

• USD/MXN strengthened  on Monday  as peso continued to weaken   on worries that U.S. President Donald Trump's firm stance on sweeping tariffs could damage the global economy.

•Trump said on Sunday that investors must  take their medicine  amid the market selloff, stressing he would only make a deal if the trade deficit with China is resolved.

• On Monday, Trump threatened to impose a 50% tariff on Chinese goods starting April 9 unless Beijing removes the 34% tariff increase it placed on U.S. imports in retaliation for U.S. tariffs .

• Mexico's peso   fell 1.11%, trading at 20.643 to the dollar, as it remains highly sensitive to tariff-related news.

•  Immediate resistance is located at 20.724(38.2%fib), any close above will push the pair towards 21.006(23.6%fib).

• Support is seen at 20.504(50%fib) and break below could take the pair towards 20.285(61.8%fib).

Recommendation: Good to buy around 20.500, with stop loss of 20.200 and target price of 21.000