Forex Weekly Outlook for January 29th, 2018

Forex Weekly Outlook for January 29th, 2018

Forex Weekly Outlook for January 29th, 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:

As gold moves higher, the US Dollar is moving lower. It is in heavily overbought territory so a corrective move back to the 90.44 is on the horizon.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 90.448 and the VantagePoint PRSI is at 8.4.

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 heavy resistance around the 1.2550 area, which coincides back to the 2014 swing highs. This could very well be a corrective move higher, and then the pair will likely turn lower. The pair will likely retrace back to the 1.2296 area. But, if the pair can push above the 1.26 area, that will signal an even bigger move to the upside.

What do the indicators say?

The predictive 18-day moving average is 1.2189 and the PRSI is at 68.1.

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

Key Levels and market movement:

As the EUR/USD goes higher, this means the USD/CHR will go lower. It’s basically the same trade (in the opposite direction). There is a bottom in place around the .9280 area. A new trend line could be forming off this area, especially considering this pair is heavily oversold. A bounce is possible, but that would be corrective in nature.

What do the indicators say?

The PRSI is at a 13.5 and the predictive 18-day moving average is at .9608.

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

Key Levels and market movement:

This pair has also put a top in place above the 1.43 area. In order for the pair to extend, it needs to keep pushing higher. The breakout point is right around the 1.38 area and that’s where the push higher started. But this move happened quickly. Any move higher that happens that quickly will have an equally fast retracement. But this pair has a strong correlation to oil. If oil turns lower, so will the British Pound.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3834 and the PRSI is at 79.5.

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

Key Levels and market movement:

The pair continues to fall. If it’s going fall, it will likely hit a bottom around the 107 area, as indicated in a previous trend. The pair is heavily oversold and is looking for a retracement back to the 109.96 level.

What do the indicators say?

The PRSI is at 12.7 and the predictive 18-day moving average is at 110.829.

The Commodities Currencies

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

Key Levels and market movement:

The pair lost a major support level at 1.2350. Patterns show some consistent buying opportunities based on previous patterns. However, traders do need to be careful about a false break to the downside.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2454 and the PRSI is 21.3.

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 basically a gold trade. If gold turns, so will this pair. Traders should watch for a retracement at the .7953 level.

What do the indicators say?

The predictive 18-day moving average is .7953 and the PRSI is 92.4.

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

Key Levels and market movement:

This is a very similar trade to the AUD/USD. There is a top at the .7450 area. Traders should watch for a retracement back down to the key VantagePoint level.

What do the indicators say?

The predictive 18-day moving average is .7242 and the PRSI is 77.8.

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By | 2018-02-05T16:53:24+00:00 January 29th, 2018|Uncategorized|0 Comments

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