• USD/MXN edged lower on Friday as the Mexican peso gained strength, driven by market optimism surrounding a potential U.S.-China trade deal.
•Heading into the weekend, there is a sense of optimism surrounding the upcoming U.S.-China trade talks, largely fueled by positive rhetoric from the Trump administration.
• The possibility of a de-escalation in the U.S.-China trade war added a layer of risk appetite, boosting emerging market currencies like Mexican peso.
• On April 2, Trump imposed 10% "reciprocal tariffs," sparing most nations but targeting China with 145% levies, sparking a prolonged trade battle that shook markets and disrupted supply chains.
• At GMT 16:38, the pair was trading down 0.18% at 19.497.
• Immediate resistance is located at 19.674(38.2%fib), any close above will push the pair towards 19.789(May 6th high).
• Support is seen at 19.457(23.6%fib) and break below could take the pair towards 19.277(Lower BB).
Recommendation: Good to sell around 19.500, with stop loss of 19.800 and target price of `19.250
