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• USD/MXN strengthened on Tuesday as investors assessed the impact of Trump’s new trade tariffs on Mexico, Canada, and China, escalating global trade tensions.
• Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, marking a significant escalation in trade tensions with two of the U.S.'s largest trading partners.
• Traders closely watched talks on Tuesday aimed at ending the Ukraine war, as U.S. and Russian officials held over four hours of discussions in Riyadh, Saudi Arabia.
• Trump's address to Congress on Tuesday may bring surprises, but the key U.S. event this week remains Friday’s February nonfarm payrolls report.
• At GMT 17:08, the pair was trading up 0.67% at 20.820.
• Immediate resistance is located at 20.858(50%fib), any close above will push the pair towards 21.035(38.2%fib).
• Support is seen at 20.658(61.8%fib) and break below could take the pair towards 20.488(Feb 11th low).
Recommendation: Good to buy around 20.800, with stop loss of 20.600 and target price of 21.000
