Mexican peso registers perfect week under optimism towards NAFTA KEY POINTS USD / MXN:



• Peso maintains gains in all sessions of the week against the United States Dollar
• Optimism of possible agreement during the following month regarding NAFTA as the main catalyst
• USD / MXN in support level of importance

Under a week of total domination by the Mexican peso, the MXN is preparing to close the week with 5 of 5 days of operations advancing against its North American counterpart.

As one of the main driving factors is operating, there is an optimism on the part of the investors to a latent possibility regarding an agreement to the NAFTA, which has been under negotiation for several months.

Specifically, comments by official commanders on both sides suggest that there is a high probability that this agreement will arrive soon, the last of these being the United States Trade Representative, Robert Lighthizer, who mentioned last Wednesday that probably during an agreement will be reached next month.



From a technical perspective, although we commented previously that the retreat of 61.80% of the 2017 minimums and the 2018 highs should be an important support area, we additionally leave the perspective open, due to its proximity, a proof of the Bearish trend line from the 2017 highs (red oval).
For the day, today, this is being tested and additionally we can see that the price is at a price level (~ 18.50) which has been widely respected throughout 2017 and 2018 and consequently , we could begin to see a weakness on the part of the Mexican Peso.

With this in mind, those traders seeking to trade the USD / MXN short should take extreme precautions because the pair is now in a confluence zone.



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