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Forex Weekly Outlook for January 15th, 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 US Dollar is rising, but it must clear that critical VantagePoint level of 92.073 to do so. It hit that level 3 separate times, but it couldn’t and ultimately pushed lower. There are many factors as to why, but the political uncertainty is a big reason. What will happen with the debt ceiling? But this slump has helped a gold prices spike and oil prices to rise.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 92.073 and the VantagePoint PRSI is at 18.1.

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:

With the commodities rising, that’s also giving a boost to the EUR/USD pair. The pair bounced off that VantagePoint 18 day moving average and it was used as a springboard to push through the upper part of the range.

What do the indicators say?

The predictive 18-day moving average is 1.1962 and the PRSI is at 79.5.

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

Key Levels and market movement:

With the Euro/USD moving higher, this led to shorts for the USD/CHF pair. It did push through the 18-day moving average, but it was only able to close above that level for one day. Ultimately this pair will move in the opposite direction of EUR/USD.

What do the indicators say?

The PRSI is at a 22.3 and the predictive 18-day moving average is at .9783.

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

Key Levels and market movement:

This pair is feeding off that Dollar weakness as well. It has managed to close above that key level of 1.36 and closed the week off at 1.3726. If this is a true break, the pair will hold above that 1.36 area.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3503 and the PRSI is at 86. All the indicators are pointing higher, but the PRSI is showing an overbought condition that traders should be cautious of.

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

Key Levels and market movement:

The pair is falling, but there is a trend line around the 110.60 level. If that trend holds, we can expect this pair to turn higher. Traders need to be cautious trading this pair. It’s already oversold. But as long as the dollar keeps falling and gold keeps rising, the USD/JPY pair will also move lower.

What do the indicators say?

The PRSI is at 19.1 and the predictive 18-day moving average is at 112.402.

The Commodities Currencies

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

Key Levels and market movement:

The pair continues to fail at the key VantagePoint level. It’s not nearly as strong as the Euro, Pound or Yen. But if the US Dollar goes down, so does this pair.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2568 and the PRSI is 33.

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

Key Levels and market movement:

As long as gold continues to rise, so will this pair. It’s heavily influenced by the commodity prices. Longs are still a viable trade as long as the pair stays above that key level of .7800.

What do the indicators say?

The predictive 18-day moving average is .7800 and the PRSI is 85.5.