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Forex Weekly Outlook for January 8^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:

The US Dollar is coming off the nonfarm payroll announcement last week. The report wasn’t awful, but wasn’t great either. Because of this, it shouldn’t have too much of an effect on the Dollar. There is heavy support coming in around 91.50. The neural index is turning higher from an oversold condition suggesting that the Dollar index is going to rally.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 92.395 and the VantagePoint PRSI is at 17.4.

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 a major resistance zone forming at 1.21. If the Euro has any chance of moving higher, it will need a sustained break of this 1.21 area. However, the indicators in VantagePoint are saying the pair will be turning lower, not higher.

What do the indicators say?

The predictive 18-day moving average is 1.1921 and the PRSI is at 62.7.

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

Key Levels and market movement:

If the Euro/US pair does in fact move lower, this will mean the USD/CHF pair will turn higher. The pair is looking at an oversold condition indicating that it has the possibility of bouncing back up to the .9806 area. The indicators in VantagePoint are also starting to turn higher as well.

What do the indicators say?

The PRSI is at a 28.8 and the predictive 18-day moving average is at .9806.

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

Key Levels and market movement:

There is still a resistance zone around the 1.3600 area. As the pair moves higher, the medium term difference crossed below the long-term difference. Although it’s not a perfect setup for shorts yet because the Neural Index has also moved higher. The PRSI is indicating a heavily overbought condition suggesting that the pair should have a retracement back to the key VantagePoint level of 1.3450 area.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3450 and the PRSI is at 80.4. The neural index is starting to turn higher, as are the predicted short and medium term differences. The predicted MACD is holding on the zero line and the PRSI is pointing higher.

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

Key Levels and market movement:

The key support level is still holding around the 112 area. Traders should watch that area very closely.

What do the indicators say?

The PRSI is at 65.3 and the predictive 18-day moving average is at 112.857.

The Commodities Currencies

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

Key Levels and market movement:

This pair is contingent upon the US Dollar improving as well. If the new US tax plan bodes well for the US and corporations, money will be shifting into the US markets and this will no doubt affect Canada. Traders should also watch out for a rate hike from the Bank of Canada.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2627 and the PRSI is 11.