VantagePoint Forex Weekly Outlook for October 16th, 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:

The Dollar is very mixed on the most recent CPI data. There’s been a steep decline off the trend line and the US Dollar is getting mixed signals around the key VantagePoint level of 92.907. If the Dollar breaks below the 40 line on the PRSI, this could signal a much bigger move to the downside.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 92.907 and the VantagePoint PRSI is at 45.1 The neural index is at a “one” position indicating short-term strength.

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:

The EUR/USD pair mixed as well, but most indicators are mildly bullish. In order to be strong buyers (or sellers) of this pair, the PRSI needs to break below 40 or above 60. The pair has significant resistance around the 1.19 level. If the pair can get above (and stay above) the 1.19 level, that is a green light to traders to start buying the pair.

What do the indicators say?

The predictive 18-day moving average is 1.1803 and the PRSI is at 47.9. The neural index is at a “zero” position indicating strength over the next 48 hours.

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

Key Levels and market movement:

The pair is very highly correlated (inversely) to the Euro/US pair. This pair has not made any new highs, and indicators are starting to turn down. The pair is not in a trending move yet, and could quite possibly be a corrective move. The level to watch is .9725. If the pair hold above that key level, that gives traders the signal to go ahead and keep buying their pair.

What do the indicators say?

The PRSI is at a 46.8 and the predictive 18-day moving average is at .9725. The neural index is at a “zero” position indicating the potential for short-term strength.

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

Key Levels and market movement:

This pair is continuing to move higher. The neural index is at a “one” and the predictive short, medium, and long-term differences are all pointing higher. It’s not a breakout scenario as of yet, but the bulls are in charge of this pair at least for now. If the pair can hold above the key VantagePoint level, it will look to make a run to the 1.34-1.35 level.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3246 and the PRSI is at 55.5.

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

Key Levels and market movement:

The USD/JPY pair is selling off. This pair also mimics the equity markets so traders should pay attention. If this pair continues to decline, the equities will most likely follow suit. However, if the pair can move back above the 112.143 area, it will most likely continue moving higher to the 113 or even the 114 level.

What do the indicators say?

The PRSI is at 38.8 and the predictive 18-day moving average is at 112.380.

The Commodities Currencies

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

Key Levels and market movement:

If gold and oil continue to move higher, this will push the USD/CAD lower. But right now, the pair is holding right at the key VantagePoint level of 1.2456. Right now the PRSI is flat. Traders should look for a break in the PRSI above 60 or below 40 to get this market moving again.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2456 and the PRSI is 52.3.

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, the pair is moving higher, but it could very easily be a false move as well. .7838 is the level to watch. If the pair can hold above that level, the pair has the potential to advance up to the .8050 level.

For the NZD/USD pair, the pair had a steep trend line form and now it’s pushing above the key level of .7156. Further longs are possible, but there needs to be a break of the 60 level of the PRSI and the PMACD needs to be above the zero line. If that doesn’t happen, this move higher was simply corrective in nature.

What do the indicators say?

For the AUD/USD pair, the predictive 18-day moving average is .7838 and the PRSI is 59.9.

For the NZD/USD pair, the predictive 18-day moving average is .7156 and the PRSI is 56.8.

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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