Forex Weekly Outlook for March 12th, 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 has a fresh EMA crossover. The key support level is coming in at the 89.41 level. With the non-farm payroll number coming out Friday, traders can expect this pair to move higher. Additionally, all the indicators in VantagePoint are favorable for the Dollar and pointing higher.
What do the indicators say?
The VantagePoint key level is at 89.49 and the VantagePoint PRSI is at 57.0.
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 has an initial move up in the beginning of the week, but then started to move lower. There really aren’t a lot of buyers for this pair. Looking at the monthly cycles for this pair, we can expect that it will start to move lower.
What do the indicators say?
The key VantagePoint level is at 1.2315 and the PRSI is at 44.4.
British Pound/U.S. Dollar (GBP/USD)
Key Levels and market movement:
This pair is in a very tight technical wedge formation and has had multiple failures along that critical VantagePoint level. This is giving way to a biased to the downside.
What do the indicators say?
The key VantagePoint level is at 1.3881 and the PRSI is at 45.7.
U.S. Dollar/Japanese Yen (USD/JPY)
Key Levels and market movement:
There remains little to no buying interest in this pair. However, bigger money continues to buy this pair (most likely China) so any retracement we’ve had has been met with strong selling pressure. If the equity markets turn lower, that will likely push this pair lower as well.
What do the indicators say?
The key VantagePoint level is at 106.94 and the PRSI is at 51.1.
The Commodities Currencies
U.S. Dollar/Canadian Dollar (USD/CAD)
Key Levels and market movement:
The USD/CAD had a significant failure coming in around the 1.3015 area. The jobs report was terrible, but the unemployment rate isn’t awful. Traders need to monitor the critical pivot area of 1.2763.
What do the indicators say?
The key VantagePoint level is at 1.2763 and the PRSI is at 55.0.
Australian Dollar/U.S. Dollar (AUD/USD)
Key Levels and market movement:
If this pair continues to fall below the key VantagePoint level of .7836, it will likely start testing the bottom part of the range, which comes in at .7690.
What do the indicators say?
The key VantagePoint level is at .7836 and the PRSI is at 54.8.
New Zealand Dollar/U.S. Dollar (NZD/USD)
Key Levels and market movement:
This pair is virtually the same trade at the AUD/USD and has been trading in the same range for the past few weeks. It keeps getting tangled up in the key VantagePoint level of .7316.
What do the indicators say?
The key VantagePoint level is at .7316 and the PRSI is at 52.9.
