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Forex Weekly Outlook for December 18th, 2017

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:

Liquidity in the markets starts to dry up at the end of the year so traders should be very cautious with trading any types of Forex pairs for the rest of 2017. Specifically for the US Dollar, there is some resistance coming in around the 94 area. If it can break above the area, the Dollar should be able to extend its rally into the first quarter of 2018.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 93.218 and the VantagePoint PRSI is at 57.6.

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:

There is a bit of a bottom forming for the EUR/USD pair right around 1.17 and there is strong trend line resistance at 1.19. However, there is still a bias to the downside. If the pair can break above the key VantagePoint level of 1.1782 it will still face some headwind at the 1.19 area.

What do the indicators say?

The predictive 18-day moving average is 1.1782 and the PRSI is at 32.8.

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

Key Levels and market movement:

The position of the PRSI and Predictive MACD are in the favor of traders right now. The indicators in VantagePoint are suggesting that the pair is likely to break above the parity level this week. If the pair continues to hold above the key VantagePoint level, this pair is likely going to head back towards that parity level.

What do the indicators say?

The PRSI is at a 60.7 and the predictive 18-day moving average is at .9882.

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

Key Levels and market movement:

Brexit negotiations are still looming and heavily affecting this pair. Traders need to continue to be very cautious. The pair might come down, but it’s likely corrective in nature and Brexit might prove to be a very good thing for this pair.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3356 and the PRSI is at 40.9.

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

Key Levels and market movement:

Gold prices heavily influence this pair. With gold being generally down, that makes it a very big negative with this pair. It’s important that this pair retake the key VantagePoint area of 112.683 if there is any shot to retake a bigger move to the upside. If it can, that previous 116 level is possible.

What do the indicators say?

The PRSI is at 54.1 and the predictive 18-day moving average is at 112.683.

The Commodities Currencies

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

Key Levels and market movement:

This pair needs to clear the 1.29 area to break above the channel that’s formed. An even better move would be to break above the 1.30 area and stay there. That would require the oil contracts to sell off completely. That intermarket correlation will be the determining factor on whether or not this pair will move higher.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2801 and the PRSI is 63.2.

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

Key Levels and market movement:

This pair has been in a very tight channel and it could very well be a bull trap. If the pair is truly going to move higher, it’s going to hold above the .7594. Otherwise, traders will see a bull trap when the pair falls back into that tight channel.

What do the indicators say?

The predictive 18-day moving average is .7594 and the PRSI is 56.1.