VantagePoint Forex Weekly Outlook for August 7th, 2017

Forex Weekly Outlook

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:

After the newest Unemployment Rate Report was released, the dollar began showing gains for the week. However, looking at the real U6 number, we are stalling out around 8.6%. That is up 2 tenths of a percent from May 2017. The report is somewhat US Dollar positive, but it probably won’t be enough to change the overall trend. While the US Dollar is holding right around that key VantagePoint level, the overall trend is still bearish at this time.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 93.836. The neural index is at a “one” position and the VantagePoint PRSI is at 5.3. With the Unemployment Rate announcement, it appears the pair is taking a corrective move, not a new trend forming.

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:

When the US Dollar goes up, the EUR/USD pair goes down. 99% of the time they are inversely correlated and that’s what is happening this week. This week, traders should watch for a corrective move down to the 1.1600 level. The pair was originally overbought and should be expected to hold right around that 18-day moving average level. Once the pair corrects from being overbought, the pair should look to turn back to the upside for the remainder of the year.

What do the indicators say?

The predictive 18-day moving average is 1.1666 and the PRSI is at 59.3. The neural index is at a “zero” position indicating short-term weakness.

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

Key Levels and market movement:

The pair is still up against a significant trend line resistance right around the .9700 area. Despite a relatively good payroll number, the pair couldn’t break through that area. However, there is momentum behind this pair because it’s tied to the global equity markets. If those markets move higher, so will this pair.

 What do the indicators say?

The PRSI is at a 74.7 and the predictive 18-day moving average is at .9631. But the neural index is at a “one” position indicating the potential for short-term strength.

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

Key Levels and market movement:

The Pound/Dollar pair has taken a bit of a hit from the Bank of England, but it does not appear to be overly bearish on this particular pair. The pair has closed below that critical level of 1.3074, but it’s likely only corrective in nature. The pair will most likely regain traction at the end of next week, but the indicators on this pair are definitely bearish at this time.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3074 and the PRSI is at 42.3. In the short term, the British Pound is weak. But in the medium and long term, the Pound is grossly undervalued.

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

Key Levels and market movement:

The Yen has still continued to strengthen against the US Dollar. It is an equity based trade and is typically strong in the Month of August. However, despite the positive data that has come out of the US last week, the pair still hasn’t broken above that 111.24 level. Only a sustained break of this level next week will take the pressure off the downside.

What do the indicators say?

The PRSI is at 36 and the predictive 18-day moving average is at 111.249.

The Commodities Currencies Forex Weekly Outlook

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

Key Levels and market movement:

The Canadian Unemployment Report wasn’t horrible and those results could finally help this pair which has experienced a strong downtrend since May 2017. This move to the upside could be corrective, but the pair must hold above 1.2626. Monday is a Civic Holiday in Canada so traders should carefully watch this pair starting on Tuesday.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2626 and the PRSI is 60.6.

Australian Dollar/U.S. Dollar (AUD/USD) and New Zealand Dollar/U.S. Dollar (NZD/USD)

Key Levels and market movement:

For the AUD/USD pair, it is sitting right on the edge of that VantagePoint 18-day predictive moving average. Traders should look for buying opportunities later in the week.

For the NZD/USD pair, it has also been sitting on that VantagePoint 18-day predictive moving average and still hasn’t closed below that area. The pair could be looking at a longer bullish trend once it works off the overbought conditions.

What do the indicators say?

For the AUD/USD, the predictive 18-day moving average is .7887 and the PRSI is 44.9.

For the NZD/USD pair, the predictive 18-day moving average is .7407 and the PRSI is 40.8.

VantagePoint Demo Weekly Outlook

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VantagePoint Trading Software has been changing the lives of traders for over 25 years with its world leading market forecasts for stocks, futures, forex and etf’s that are proven to be up to 86% accurate.

VantagePoint Software

VantagePoint Trading Software has been changing the lives of traders for over 25 years with its world leading market forecasts for stocks, futures, forex and etf’s that are proven to be up to 86% accurate.

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