The Mexican Peso (MXN) and the US Dollar (USD) have been eagerly anticipating the release of significant economic data and statements from policymakers in anticipation of upcoming market movements. Despite the positive results of April’s Retail Sales figures in Mexico, all eyes continue to be on the outlook and progress of the US Dollar, particularly with the recent introduction of the “one big beautiful bill” proposed by US President Donald Trump. The release of Mexico’s Retail Sales data at 12:30 GMT, which exceeded expectations for both monthly and annual figures, was overshadowed by developments in the US, emphasizing the US Dollar’s importance in the current economic climate. As the trajectory of the Greenback remains a key focus for investors, they are closely monitoring further comments from US Federal Reserve (Fed) officials as well as the upcoming vote in the House of Representatives on President Trump’s proposed tax legislation, which could significantly impact the fiscal policy outlook and affect investor sentiment towards the US Dollar. The USD/MXN pair has bounced back from its lowest point since October and has broken through the previous psychological support level at 19.30, which is now acting as resistance. The current price has risen above the previous downward trend line from April, creating a new support level at 19.28. The Relative Strength Index (RSI) has also recovered, reaching above the 36.00 mark, but still reflects a bearish trend. Since the RSI at 30.00 is considered a potential oversold level, the bearish momentum remains, with the next significant support level at the round number of 19.20. However, if the US Dollar regains strength and prices break through the descending trend line, the USD/MXN pair could test the April low of 19.47 and possibly reach the 20-day Simple Moving Average (SMA) at 19.53.