VantagePoint Forex Weekly Outlook May 22nd, 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:

Institutional flows dominate again this week. Traders should look for a turnaround in the dollar around the mid to latter part of this upcoming trading week. There could also be a pause in the market based on price action.

What do the indicators say?

The VantagePoint software picks up on the repetitive patterns that happened through the 3-month timeframe. The dollar is currently oversold and a bounce is imminent any day now. This volatility will be a factor in quite a few pairs. The VantagePoint PRSI is currently at a 17.1.

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 what’s happening with the US Dollar, traders should look for the Euro to stall out around the 1.13 area. Indicators are once again showing an extreme overbought condition.

What do the indicators say?

The key VantagePoint level for the week is 1.0960 and the PRSI is at an 82.6. However, the Euro has been advancing so traders should look for one more push around that 1.13 area so the pair can be shorted. The predictive differences within VantagePoint are also indicating the pair is heavily overbought.

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

Key Levels and market movement:

The market is moving aggressively down, but the proprietary indicators in VantagePoint are showing that the pair is losing some of that momentum. Because the pair is oversold, traders should look for longs towards the middle part of the week. The critical VantagePoint 18-day predictive moving average is coming in at 0.9924

What do the indicators say?

The pair is currently indicating a buying opportunity because of an oversold condition. The PRSI is at a 19.8 and the neural index is still pointing down.

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

Key Levels and market movement:

There was a big uptrend, but the market has been tangled around the 1.2950 since. The critical VantagePoint 18-day predictive moving average is coming in at 1.2886 with longs being favored heavily with these conditions.

What do the indicators say?

The neural index is at a “one” position and the predictive short, medium and long-term differences are pointing up at trend-ready levels with the Pound/Dollar pair. The PRSI is at a 75.4, which indicates more room for growth.

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

Key Levels and market movement:

A swing low is taking place from an oversold condition. If 110 continues to hold, traders should look to buy at the level. The critical VantagePoint 18-day predictive moving average is coming in at 112.267.

What do the indicators say?

The VantagePoint indicators are showing the Dollar/Yen pair has the potential to start moving higher. The PRSI is showing a 38.8.

The Commodities Currencies

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

Forex Weekly Outlook Key Levels and market movement:

Like the week prior, the price of oil heavily affects this pair and has pushed the CAD lower. There is a lot of activity to begin the week around 1.3611. The sell signal was around 1.38 for the last several weeks and it’s only getting more aggressive.

What do the forex weekly indicators say?

The PRSI is at a 25.6, with a little bit more room to the downside. Traders should use caution around the 1.3400 levels, which was the VantagePoint breakout area several months ago. Traders should look for the part of the market where the pair is no longer making new lows, at which point they should exit the shorts and turn around and get long.

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

Forex Weekly Outlook Key Levels and market movement:

The critical VantagePoint level for AUD/USD is .7439. The pair has really lacked momentum over the past several weeks. Traders can look for a good shot at the pair moving to .7500

NZD/USD pair is running a really tight channel between .6950 and .6850. The key level to watch is at .6900.

What do the forex weekly outlook indicators say?

For the AUD/USD pair, the VantagePoint predictive differences for short, medium and long and the strength indicators continue to rise indicating a potential opportunity to buy. The intermarket correlation is gold and traders need gold to move higher. The PRSI is at 68.9.

The NZD/USD pair is still very bearish overall because of gold and a potential rate hike in June. This hike would hurt both pairs. Despite many saying this pair should have gone lower last week, VantagePoint forecasted very accurately that it was going to go higher. The questions now are can the pair break .6950 to produce a decent long trade.

VantagePoint Demo Forex 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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