VantagePoint Forex Weekly Outlook May 8th, 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 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. 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 market closed last week at 98.827 and has a key VantagePoint pivot area of 99.241 for the upcoming week.

What do the indicators say?

Neural index in a “zero” position influenced by the election in France.

Bearish movement may be bottoming out as predicted differences start to turn up.

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:

Based on the results of the French election, this should push the Euro higher.

What do the indicators say?

Neural Index is showing that we are overbought, but there is room for a further spike on the gap into Monday and Tuesday trades.

If the US Labor report has influence, the Euro could sell off by Tuesday or Wednesday.

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

Key Levels and market movement:

The pair mirrors the Euro/US pair. Watch out for the .9850 level. The VantagePoint Predictive Moving average is coming in around .9953

What do the indicators say?

VantagePoint indicators are starting to roll over to the long side so keep a close eye on this.

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

Key Levels and market movement:

Market movement shows bullish momentum but it is starting to struggle after the spike around April 17, 2017 around 1.290. If it is truly a bullish movement, we want it holding above 1.29 going into the week.

What do the indicators say?

The VantagePoint indicators are still very mixed indicating a strongly overbought signal. However, keep in mind that just because something is overbought doesn’t mean it can’t continue to move higher. The key VantagePoint Moving Average is at 1.2797 and we’re closing in on 1.2979. The further we move away from the Moving Average, the more likely we are to retrace to it.

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

Key Levels and market movement:

The labor report and new administration have been fantastic for this movement. After breaking through the trend line, we continue to push higher. 115.000 is within our target sights. Be careful with pre-market trading this week given the uncertainty with the French election. The key VantagePoint level is 111.227 for the week.

What do the indicators say?

Neural index in a “one” position and the predicted differences are still rising. We are moving towards an overbought scenario, but the Dollar/Yen pair typically ignores overbought and oversold signals. This could mean that we still have room to run. A break of 113 should see this pair advancing rapidly to the 115 area.

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

Key Levels and market movement:

The Canadian Labor report was terrible. Oil prices and the trade war with the US have also put pressure on the Canadian Dollar. The only thing that would really help the Canadian Dollar right now is for oil prices to start trending higher again.

What do the indicators say?

Our critical VantagePoint level is at 1.3580 and we could be looking at a retracement down to that level. If that area holds, we would be buyers. However, if oil goes back up and that number breaks, we would be sellers.

President Trump’s comments will also be one to watch, which can wreak havoc on some of these currency pairs.

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

Key Levels and market movement:

The Aussie Dollar came down to the resistance level around 0.7450. If the dollar rallies and gold goes lower, it’s going to send the Aussie dollar lower The New Zealand pair broke below the resistance level on its way to closing at 0.6864. The key VantagePoint pivot area for this pair is 0.6954.

The NZD has very identifiable price action with heavy support around .6850. We’re looking to see if gold will come under pressure which will affect this currency.

What do the indicators say?

The critical VantagePoint level to watch on the upside is .7489 to see if the area holds. If it holds, that indicates a selling opportunity.

The NZD starts to break around .6840, there will be a very good short here. We’re looking to play a break at the .6840 area or sell into .6922

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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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