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Forex Weekly Outlook for February 5^th, 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:

Similar to last week, as gold moves higher, the US Dollar is moving lower. It did have a good day on Friday, and a good non-farm payroll number. Because of this, the indicators have started to turn higher in the Dollar’s favor. This coming week, traders should look for the equity markets to push lower along with commodities.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 89.793 and the VantagePoint PRSI is at 33.3.

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 had a decent week, until Friday when it began to take a hit. It is heavily tied to oil contracts and gold. When those two started to take a nosedive, so did this pair. The neural index is still positive, but the pair is still overbought. A corrective move to the 1.2294 area is very likely.

What do the indicators say?

The predictive 18-day moving average is 1.2294 and the PRSI is at 79.2.

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

Key Levels and market movement:

As gold starts to move lower, this pushes the USD/CHF pair higher. Most of the indicators are starting to turn positive and the PRSI is indicating the pair is grossly oversold. A retracement back to the .94 area is very likely.

What do the indicators say?

The PRSI is at a 12 and the predictive 18-day moving average is at .9476.

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

Key Levels and market movement:

Brexit continues to influence this pair, but it’s still had a big run up from the 1.32 area. The pair has started to close lower than the VantagePoint 8-day predictive moving average, which suggests the pair will start moving closer to the 18-day key level of 1.3978.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3978 and the PRSI is at 62.5.

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

Key Levels and market movement:

The neural index has finally turned positive and the pair has reached a bottom. This could all mean the pair will finally turn higher. The PRSI is also indicating heavily oversold territory, which means the pair is likely to turn higher.

What do the indicators say?

The PRSI is at 46.7 and the predictive 18-day moving average is at 110.208.

The Commodities Currencies

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

Key Levels and market movement:

This pair feeds off the US economy. When the US dollar turned higher, so did this pair. The pair needs to hold higher than 1.2406 to continue its move higher and ultimately back to the 1.25 area.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2406 and the PRSI is 59.6.

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

Key Levels and market movement:

There is massive resistance sitting at the .8130 area. There is a huge correlation between this pair and gold and oil. When they turned lower, so did this pair and the indicators in VantagePoint demonstrated that.

What do the indicators say?

The predictive 18-day moving average is .7994 and the PRSI is 44.4