The Mexican Peso (MXN) has remained stable against the US Dollar (USD) despite the threat of significant tariffs on the European Union (EU) by US President Donald Trump. As of now, the USD/MXN pair is trading below the crucial mark of 19.30 as traders analyze developments in Mexico and the US. In April, Mexico’s Trade Balance data indicated a trade deficit of $88 million, lower than the expected $160 million. Although it reflects a significant decline from the $3.442 billion surplus in March, the report published by Mexico’s National Institute of Statistics and Geography (INEGI) every month showcases the disparity between a country’s exports and imports. Meanwhile, Trump took to his Truth Media social media page to propose a 50% tariff on EU imports, set to be implemented from June 1st. He also mentioned that the EU was challenging to negotiate with and that the discussions were fruitless. Recent events in the US, including the passing of Trump’s ‘one big beautiful’ tax bill and a downgrade in Moody’s credit rating, have resulted in a weaker dollar, increasing the demand for different assets. The USD/MXN has decreased below 19.30, with prices consolidating below the 10-day and 20-day SMA at 19.39 and 19.49, respectively. A move above 19.30 could activate these levels, and if the May low of 19.23 is tested, it could suggest that sellers continue to influence the trend. The Relative Strength (RSI) indicator stands at 38.92, indicating a strong downward momentum. If the downward trend sustains, the next potential support levels are the May low of 19.23, followed by the October low of 19.11 and the psychological mark of 19.00.