Latest no progress has been made 25.01.2018 at 3pm GMT
2 big stumbling blocks remain , the auto deals and the sunset clause, Where US wants to push for a 5yearly suppression of the Trade Agreement unless all parties specifically
agree on its continuation. CAD and MXN both living on hope though , USDCAD hovering around the day’s lows 1.2290 and USDMXN a little further off at 18.43 after having seen a low of 18.32.
Both pairs will move according to any (non-)decision on the Trade agreement.
There are a few levels to watch for breaks on each pair depending on the outcome, positive for the currency in case of an agreement on the hot topics, negative if talks break up of course..
USDCAD has its next support at 1.2260 and the day’s high 1.2350 to observe. Assuming that it’s NAFTA making the move, I would expect a positive outcome to see a break of the earlier and possibly a revisit of the mid 1.20S in the next session. Failure should see 1.2350 go for a retest of the 1.2385-1.2410 resistance zone, breaking there would put the 1.25 pivot area a lot closer.
USDMXN boundaries are 18.30 and a close one at 18.4850 around, MXN having seen big moves lately , I wouldn’t be surprised to see a few % moves on the Agreement outcome. 18.75 and 18.14 would be the boundaries I’d watch for more action on this pair .
Happy hunting and don’t forget this pairs are volatile , keep it sensible