Forex Weekly Outlook for December 4th, 2017

Forex Weekly Outlook for December 4th, 2017

Forex Weekly Outlook for December 4th, 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:

The Dollar has come under pressure. But with the tax bill on the horizon, this should stabilize the US Dollar. It has trend line support coming in around 92.50. There is still political uncertainty with President Trump and Mike Flynn but the tax bill should settle the Dollar a bit as well. Looking at the intermarket correlations, the Dollar will only take a big hit if gold can break above the 1305 area.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 93.366 and the VantagePoint PRSI is at 30.1.

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 Euro has had a wild ride this week, but it is still holding above the critical VantagePoint level of 1.1850. This pair has the potential to come under pressure mid-week based on a positive outlook from the US. If the Euro wants to continue showing long-term strength, it must break above the 1.20 area and stay that way. Buying on dips is still the best play here.

What do the indicators say?

The predictive 18-day moving average is 1.1850 and the PRSI is at 64.9. The neural index is at a “one” position indicating strength over the next 48 hours.

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

Key Levels and market movement:

This pair typically trades a lot higher. Right now, not so much. The indicators in VantagePoint are indicating that there is further downside ahead with this particular pair. Traders need to take this warning seriously and trade cautiously. This pair closed last week very bearish.

What do the indicators say?

The PRSI is at a 27.3 and the predictive 18-day moving average is at .9856. The neural index is at a “zero” position indicating the potential for short-term weakness.

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

Key Levels and market movement:

With Brexit talks, this pair has wild up and down swings. The medium-term is weaker than the longer term trend and the RSI is pointing back to the downside. Traders need to watch the area around 1.36, which will be watched by order flow traders as well. They’ll look to sell into this area for an easier trade.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3298 and the PRSI is at 72.1

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

Key Levels and market movement:

This pair trades essentially the same as the USD/CHF pair. There is a substantial bottom in place at 111, but the pair closed out the week at 112.12. Traders should look for a sustained break of 112.28, and this is very possible with the US tax bill being passed. If it can close above this area repeatedly, it will take the pressure off the downside. If not, the pair is heading right back to the 111 area.

What do the indicators say?

The PRSI is at 47.5 and the predictive 18-day moving average is at 112.283.

The Commodities Currencies

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

Key Levels and market movement:

This pair has a clear identifiable range coming in at 1.29 and 1.2650. If the pair breaks the 1.2650 area that will most likely trigger a bigger move back down to the 1.2480 area. The Neural Index is confirming a move lower, the medium term crossed below the long-term predictive difference, and the PRSI is pointing lower as well.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2766 and the PRSI is 39.9.

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

Key Levels and market movement:

This pair is completely tangled up in the key VantagePoint level of .7612. If the PRSI can break above 60 and there is a break above the 18-day moving average, it will a trigger a much bigger move for this pair.

What do the indicators say?

The predictive 18-day moving average is .7612 and the PRSI is 57.6.

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

Key Levels and market movement:

Between the two commodity currencies, this one is stronger. A fresh buy signal is forming with the Neural Index at a one and predictive differences pointing higher. But the pair needs to hold above that .68 level.

What do the indicators say?

The predictive 18-day moving average is .6872 and the PRSI is 54.1.

Are you ready to trade the currency markets using the power of Artificial Intelligence in VantagePoint? Request your demo below! 

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By | 2017-12-05T11:51:59+00:00 December 4th, 2017|Forex|0 Comments

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