The G7 Summit deepened the rift between the US and its closest allies with Canada taking the brunt of the damage. What the fallout for NAFTA will be remains to be seen. The impact on Mexico also remains unclear with the USDMXN pair cycling between 20.64168 and 20.20390. The market moved higher since the April low and rallied above 20.00000 on the lead into the meetings. Resistance at 20.64168 has been tested and 21.00000 remains the next area where sellers could be waiting. Further on the 21.38828 corresponds to the late 2016 high with a double top formed at 22.02739.
Support for the pair is found at 20.20390 as mentioned earlier, with the 20.00000 level close by. The 19.90000 level was the high from December 2017 and a loss of this point could see longs come under pressure and the trend tested. To build on such a move sellers would need to take out 19.43914 and the 50 DMA followed by the 100 DMA at 19.14253 creating lower lows in the process. The support of the 200 DMA and the 18.95150 level could be used by longs to prop up price but a loss of these levels could target 18.43770 and 18.04950 as supports.
