USD/MXN technical analysis: Pullback likely, Congressional Republicans to block Trump's tariffs on Mexico

• MXN is gaining ground on reports the GOP lawmakers are discussing vote to block Trump’s new tariffs on Mexico.
• USD/MXN's 4-hour chart is flashing bearish divergence of RSI.

Mexican Peso seems to have picked up a bid in the last few minutes, possibly on reports stating that Trump's plans to impose tariffs on Mexico could be blocked by Congressional Republicans.

The USD/MXN is currently trading at 19.7322, representing a 0.23% drop on the day.

Notably, on the 4-hour chart, the relative strength index has produced a lower high, contradicting the higher high on the price.

That bearish divergence indicates scope for a deeper pullback to the former resistance-turned-support of 19.6221 (March 7 high). 

4-hour chart

Trend: Bearish

Pivot points