In the latest Forex Weekly Outlook, we bring in the start of the 2nd quarter by looking at the major pairs and what markets will influence the movement of these pairs in the coming days. Identifying these influential markets and knowing a market’s pivot areas are key when timing your trades and maximizing your profit potential.
Forex and the U.S. Dollar
The U.S. Dollar Index picked up momentum at the end of the week to close at 100.218. There appear to be some issues breaking through the 100.500 area as it was tested twice and failing both times. The key level for the upcoming week will be 100.128. There is some short-term strength showing in the predicted differences and the VantagePoint neural index. But, the RSI has turned flat just below the bullish momentum level.
Forex Weekly Outlook for Major Pairs
Euro/U.S. Dollar (EUR/USD) ended a bearish week with a 1.0653 close. The market looks to bounce back with a key VantagePoint level of 1.0715. But, the indicators don’t show much support for reaching that number. At least, not early in the week. All indicators are down, including the RSI breaking the bearish momentum level with a 36.7 We could see a bounce off the lower support line around 1.0600 before the end of the week.
U.S. Dollar/Swiss Franc (USD/CHF) enjoyed a bullish week (thanks to its inverse relationship with EUR/USD) and closed the week at 1.0025. The market is in the middle of a clearly-defined funnel between the 1.0150 and 0.9825 areas. The key level for the week is 0.9980. There looks to be a slight bullish bias as our short-term indicators are up. The MACD crossed above the trigger line but is still well below the zero point. And the RSI is trending up, but the 56.2 value places it just outside the bullish momentum level.
British Pound/U.S. Dollar (GBP/USD) sees a support trend line running right into the VantagePoint 18-day PEMA. The key level of 1.2425 for this week becomes that much more critical. A break below that level would also indicate a trend line break which means bearish movement would be much more significant. However, it does look like levels will hold through the first part of the week. The VantagePoint neural index and predicted differences are up, the MACD is above the trigger and “zero” line, and the RSI is above the bullish momentum with a value of 66.6.
U.S. Dollar/Japanese Yen (USD/JPY) is flirting with the support trend line coming in just above 110.000. This market is heavily influenced by gold. It will take a weak gold market to help this pair come off the support line. The MACD remains below the trigger line and the RSI sits at 39.4.
The Commodities Currencies
U.S. Dollar/Canadian Dollar (USD/CAD) comes into the week with a watchful eye on oil. If oil continues to rise, this market will continue to gain bearish momentum. The key level for this week will be 1.3346 as our predicted differences are running flat just below the “zero” point. The RSI is also running flat just above the bearish momentum area with a 42.8 level.
Australian Dollar/U.S. Dollar (AUD/USD) continues to move sideways along the VantagePoint 18-day PEMA. After a close of 0.7628, the pair has a key level of 0.7635. Gold moving higher will play a big role as to whether this pair can rise to meet that level. There doesn’t appear to be too much momentum for either direction. The short-term indicators are down and the RSI fell, but it remains out of bearish momentum territory with a 44.6 level.
New Zealand Dollar/U.S. Dollar (NZD/USD) saw a week of sideways movement holding just below to resistance line. The key level for this week is 0.7024. Any big move will have to be triggered by a push above the resistance line or a fall below the 0.6950 area.
About the 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 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 time to enter and exit those trades.