Forex Weekly Outlook for February 19th, 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 indicators in VantagePoint are quite mixed with this dollar selloff. There is a high correlation between gold, oil and the equity markets. Traders need to watch this. There is not a complete trend reversal, but traders should be paying attention.
What do the indicators say?
The VantagePoint key level is at 89.30 and the VantagePoint PRSI is at 39.2.
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:
This pair is unable to clear the 1.2550 area. It must break through this level to move any higher, but for now, the pair is basically range trading. But for now, the PRSI is showing that the EUR/USD pair is losing momentum and slipping below that key 60 level.
What do the indicators say?
The key VantagePoint level is at 1.2381 and the PRSI is at 58.1.
U.S. Dollar/Swiss Franc (USD/CHF)
Key Levels and market movement:
We’re looking for buyers to come into this pair. It is slowly recovering from a bigger move to the downside over the last few months. The indicators in VantagePoint aren’t showing a bigger move to the downside so this pair has the opportunity to recover. But traders need to watch this pair carefully because it is heavily influenced by political jitters on both sides of the aisle.
What do the indicators say?
The key VantagePoint level is at .9313 and the PRSI is at 27.6.
British Pound/U.S. Dollar (GBP/USD)
Key Levels and market movement:
The pair continues to fail from that upper trend line that’s been drawn. The pair is struggling to hold above that key VantagePoint level of 1.3955 and struggling to hold a bullish bias. While the Neural Index is positive, the PRSI is failing at the 60 level.
What do the indicators say?
The key VantagePoint level is at 1.3978 and the PRSI is at 56.7.
U.S. Dollar/Japanese Yen (USD/JPY)
Key Levels and market movement:
Nothing seems to be saving this pair. It keeps falling week after week. Japan and China are settling their own trade differences and it’s affecting this pair heavily. Traders need to take extreme caution with this pair until it can find its bottom and stabilize.
What do the indicators say?
The key VantagePoint level is at 107.54 and the PRSI is at 20.8.
The Commodities Currencies
U.S. Dollar/Canadian Dollar (USD/CAD)
Key Levels and market movement:
The USD/CAD had a very choppy week, but traders have had luck buying on dips. There are buyers coming into this pair around the 1.2450 area.
What do the indicators say?
The key VantagePoint level is at 1.2535 and the PRSI is at 54.7.
Australian Dollar/U.S. Dollar (AUD/USD)
Key Levels and market movement:
This pair started to advance higher, but then a big sell-off happened on Friday. Additionally, the PRSI is starting to turn bearish. In order for this pair to move higher, it needs gold to move past 1370.
What do the indicators say?
The key VantagePoint level is at .7891 and the PRSI is at 49.8.
New Zealand Dollar/U.S. Dollar (NZD/USD)
Key Levels and market movement:
This pair continues to close above the key VantagePoint level. Of the 3 commodity pairs, this one is definitely the strongest this week. But even this pair is starting to lose momentum.
What do the indicators say?
The key VantagePoint level is at .7332 and the PRSI is at 64.
