VantagePoint Forex Weekly Outlook June 12th, 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 Weekly Outlook 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 dollar has the potential to have a very tough week ahead of the FOMC announcement. If here is no rate hike on Wednesday, the dollar is going to come under heavy selling pressure. Additionally, if there is a rate hike but no indication of another hike in the near future, the dollar will be under pressure. Once again, traders should focus on institutional flows as discussed in previous weeks. Dollar weakness comes into play around the 15th of every month.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 96.990. The dollar closed above that, indicating a bullish trend. Indicators show a very tight channel of the dollar index. The VantagePoint PRSI is recovering at 49.7 but still not above the 50 line.

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 needed to clear the 113 level and it didn’t. As a result, the neural index within VantagePoint has been at a “zero” position for 4 days indicating short-term weakness in the markets. The short, medium and long-term differences are also pointing down. As in previous weeks, the political climate in the US will be a big contributing factor with this pair.

What do the indicators say?

The predictive 18-day moving average is 1.1168 and the PRSI is 56.1. The 1.1168 is a make-or-break area for this pair.

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

Key Levels and market movement:

This pair mirrors the EUR/USD pair. When the EUR/USD goes up, the USD/CHF goes down. The pair is basing out at the .96 level. The VantagePoint predictive short, medium and long-term differences are all moving higher. This could all indicate that the Euro is heading for a much bigger move to the downside.

What do the indicators say?

The PRSI is at a 51.4 and the predictive 18-day moving average is at .9736. The neural index is at a “one” position warning traders that the pair is going to move higher.

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

Key Levels and market movement:

Despite the volatility with the election, the pair is looking relatively stable. VantagePoint’s leading indicators showed that the pound was beginning to sell off, regardless of the election results. After the big jump in mid-April, there hasn’t been much movement since. Now it’s looking like the Pound is prepared to start moving lower.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.2876 and the PRSI is at 31.1. The neural index is at a “zero” position and the predictive short, medium and long-term differences are all pointing down.

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

Key Levels and market movement:

This pair is going to be tricky because of the FOMC. With the crossover of the Predictive MACD, this is signaling a bearish move with the pair. The pair has the potential to advance early in the week and then go flat into Wednesday’s FOMC announcement. That announcement will be the determining factor of that pair. Traders should use caution because of all the current uncertainty.

What do the indicators say?

The PRSI is showing a 33. The predictive 18-day moving average is at 110.821. As long as the pair is holding below 110.821 the pressure is still at the downside.

The Commodities Currencies

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

Key Levels and market movement:

Despite the massive selloff with oil, the pair stayed within the expected channel. Traders should watch the upper channel around 1.36. As long as the pair holds below that, the bias based on the indicators is to the downside.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.3507 and the PRSI is 41.4. The neural index is pointing down, as are the predictive short, medium, and long-term differences. If the PRSI can break through the 40 level, that will trigger a much bigger move to the downside.

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

Key Levels and market movement:

The AUD/USD pair is putting a top in around .7550. The predictive differences are currently moving sideways. Traders should look for a corrective move back to .7471 at the beginning of the week and potentially a good buying opportunity.

For the NZD/USD, traders should look to break clear of the swing high around .7200. Longs will be an option, but only after the FOMC announcement

What do the indicators say?

Gold prices will continue to influence the AUD/USD pair. Overall, it’s not looking good for the dollar. The predictive 18-day moving average is .7471 and the PRSI is 60.5.

For the NZD/USD pair, the predictive 18-day moving average is .7082 and the PRSI is 88.5

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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