Forex Weekly Outlook for April 16th, 2018

Forex Weekly Outlook for April 16th, 2018

Forex Weekly Outlook for April 16th, 2018

The Forex Weekly Outlook is designed to help traders remain aware of intermarket correlations of global market relationships. You can become more profitable if you know how to get ahead of the trends and understand that these relationships can potentially expand your portfolio. Utilizing the predictive indicators and intermarket relationships in VantagePoint Intermarket Software can help traders find the right trades and the right times to enter and exit those trades. Let’s look at the charts for the U.S. Dollar and the major pairs.

Forex and the U.S. Dollar

The U.S. Dollar Index is the backbone of forex trading. The bulk of the trades involves buying or selling the U.S. dollar. Understanding the movements of the individual market will greatly benefit forex traders as they will be able to better predict the movements of the pairs based on the IDX market movement.

Key levels and market movements:

The Dollar is trying to recover and breakthrough the key VantagePoint level. If the political climate surrounding the dollar can die down, the U.S. currency should be able to make up some ground. The short-term indicators in VantagePoint are leveling out with all indicators looking to move sideways as we start the week.

What do the indicators say?

The VantagePoint key level is at 89.541 and the VantagePoint PRSI is at 47.1.

Forex Weekly Outlook for Major Pairs

The major pairs are where most Forex traders trade the market. In the Forex Weekly Outlook we take a look at the most popular pairs analyzing price action, news events and/or risk off scenarios that could play a role in market movement, and a series of VantagePoint charts that best present information that can assist traders in determining where the market may move in the week ahead.

Euro/U.S. Dollar (EUR/USD)

Key Levels and market movement:

The pair appears to be trading within a well-defined channel. The shorter-term indicators in VantagePoint appear to slightly favor bullish movement.

What do the indicators say?

The key VantagePoint level is at 1.2316 and the PRSI is at 54.9.

U.S. Dollar/Swiss Franc (USD/CHF)

Key Levels and market movement:

This pair is highly correlated to the global equity markets. If they start to move lower (especially the S&P 500), so will this pair. Overall, this pair has been bullish in the short-term since mid-February.

What do the indicators say?

The key VantagePoint level is at .9555 and the PRSI is at 61.7.

British Pound/U.S. Dollar (GBP/USD)

Key Levels and market movement:

There are two significant areas of resistance in this cross pair. The 1.4250 and the 1.4350 areas will both be levels to watch as the week progresses. The VantagePoint levels show recent highs, which could indicate a potential sell-off from order flow traders.

What do the indicators say?

The key VantagePoint level is at 1.4103 and the PRSI is at 83.0

U.S. Dollar/Japanese Yen (USD/JPY)

Key Levels and market movement:

The areas to watch for this pair appear around the 108.30 area. A sustained break of this area will take the pressure off the downside. The intermarket correlations are still moving lower even with the heavy correlation to the strengthening equity markets.

What do the indicators say?

The key VantagePoint level is at 106.77 and the PRSI is at 64.7.

The Commodities Currencies

U.S. Dollar/Canadian Dollar (USD/CAD)

Key Levels and market movement:

A string of bullish days may be triggering a corrective buy-signal. The medium-term predicted difference crossed over the long-term to the upside and the PRSI is showing bullish momentum. If oil moves lower this week, this pair will see a directly correlated move to the upside.

What do the indicators say?

The key VantagePoint level is at 1.2756 and the PRSI is at 26.6.

Australian Dollar/U.S. Dollar (AUD/USD)

Key Levels and market movement:

We come into the week on the heels of a fresh Triple EMA cross. Longs are carrying the edge to start the week, but it’s evident they’re losing momentum. The PRSI has backed off and the predicted differences are crossing back to the downside.

What do the indicators say?

The key VantagePoint level is at .7724 and the PRSI is at 63.9.

New Zealand Dollar/U.S. Dollar (NZD/USD)

Key Levels and market movement:

This pair is very similar to the AUD/USD. The indicators appear to be turning to the downside. Shorts will carry a slight edge at the beginning of the week.

What do the indicators say?

The key VantagePoint level is at .7297 and the PRSI is at 63.5.

 

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By | 2018-04-16T14:48:44+00:00 April 16th, 2018|Forex|0 Comments

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