United States and Mexico are close to a common stance on NAFTA. The negotiations are to restart today and we expect to see that they are only few hours away from two sides reaching a common position. On the other side, Canada is waiting for bilateral US-Mexican issues to be resolved. After that Canada should join discussion and the three sides could require further negotiations for a week. Depends on positive headlines and on the outcome of the issue, we should expect to see that the US Dollar get some support.
USD/MXN continued to trade in a sideways manner on testing the 18.92 resistance line. We could see the pair continuing to trade in a sideways manner today also. If the pair rises, it could break the 18.92 resistance line and aim for the 19.05 resistance hurdle. On the other side, we could see it breaking the 18.71 support line and aim for the 18.57 support barrier.
Cable remained relatively stable ahead of the Brexit negotiations. If there is a no deal about Brexit, then we can see that there can be including the recognition of some EU rules and include a comparison of the present and the future status of trade – Plans by UK government’s! If there’s any negative headlines happens about Brexit, we could see the pound weakening.
GBP/USD continued its sideways movement between the 1.2770 resistance line and the 1.2685 support line. This pair can show some sensitive to some of the Brexit headlines or a further weakening of the USD. We could see it breaking the 1.2685 support line and aim for the 1.2590 support barrier. On the other side, we could see it breaking the 1.2770 resistance line and aim for the 1.2825 resistance hurdle.
Since negotiations between US and China begins, the US dollar weakened against other pairs. Markets seem to have increased their optimism about trade prospects ahead of the start of the negotiations.
EUR/USD rose on the end of the last week. It’s breaking the 1.1428 resistance line. We could see the pair rising even further, remaining above the upward trend-line. We could see it aiming if not breaking the 1.1482 resistance line. On the other side, we could see the pair breaking the 1.1428 support line and the prementioned upward trend-line, opening the way for the 1.1360 support level.