FxWirePro: USD/MXN recovers from eight month low, downtrend likely to resume

• USD/MXN recovered from an eight-month low on Monday as investor jitters grew following President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell.

• White House adviser Kevin Hassett said Friday that Trump’s team is considering whether they can fire the Fed Chair.

•The remarks about Powell sparked concerns over the Fed’s independence in setting monetary policy and raised doubts about the stability of U.S. assets.

• This added to global market uncertainty, intensifying concerns already fueled by escalating U.S.-China trade tensions following President Donald Trump’s initiation of a trade war.

• At GMT 19:05, the pair was trading up  0.49 percent  at 19.736

•  Immediate resistance is located at 19.811(38.2%fib), any close above will push the pair towards 19.998(50%fib).

• Support is seen at 19.575(23.6%fib) and break below could take the pair towards 19.453(Lower BB).

Recommendation: Good to buy around 19.800, with stop loss of 20.200 and target price of 19.400