VantagePoint Forex Weekly Outlook July 3rd, 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:

This week is going to be short (because of the holiday both in the US and Canada) but with no shortage of data reports influencing the markets. The U.S. Dollar has been moving sideways for an extended period of time but it has broken through the channel. VantagePoint is indicating that the Dollar looks to be moving into oversold territory. If it’s going to improve, it will be this week with a favorable labor report and a stronger FOMC statement

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 96.516. The neural index is at a “zero” position and the VantagePoint PRSI is at 16. Traders should bring price action into their levels.

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:

If the Euro is going to take a pause, it could very well be this coming week. The Euro has broken above its swing high, but now it could be time for a retracement. The more this pair moves above that VantagePoint 18-day moving average, the more likely it’s going to quickly come back down. Indicators are showing that the Euro is strongly overbought.

What do the indicators say?

The predictive 18-day moving average is 1.1247 and the PRSI is at 84. The neural index is at a “one” position indicating short-term strength.

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

Key Levels and market movement:

The pair mirrors the dollar index. If the dollar goes up, so will this pair. Traders should look for a retracement around the .9629 area.

What do the indicators say?

The PRSI is at a 20.8 and the predictive 18-day moving average is at .9672. The neural index is at a “zero” position indicating the potential for short-term weakness.

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

Key Levels and market movement:

The British Pound is highly undervalued against the US dollar. Brexit has caused fear, and that fear has influenced this pair. A new trend line is beginning around the 1.2900 and the pair needs to clear a swing high around 1.300 to keep that bullish momentum.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.2830 and the PRSI is at 80.8. The neural index is at a “one” position. The PMACD is indicating that there is still gains ahead for the Pound but the PRSI is suggesting a corrective move might happen before that big push.

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

Key Levels and market movement:

The Dollar/Yen pair is notoriously volatile going into a payroll The USD/JPY currently moving sideways but the PMACD is quite good breaking just above the 0 line. The pair has the potential to head to the 114 level, but it’s going to be determined based on the data that happens this week and what is in the FOMC minutes.

What do the indicators say?

The PRSI is showing a 73 and holding sideways. The predictive 18-day moving average is at 111.494. The indicators are showing that the pair is mildly overbought, but the pair does have room to extend.

The Commodities Currencies

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

Key Levels and market movement:

This pair is slightly overextended and oil continues to dominate this pair. If oil advances that will help the USD/CAD pair continue to move lower. Traders should look for a retracement around that key VantagePoint level of 1.3277

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.3277 and the PRSI is 12.8.

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

Key Levels and market movement:

The AUD/USD is coming up to some significant resistance around .7750. If the pair can break that level, it should move into the .7900 area.

The NZD/USD has been tangled up in that trend line and the pair has started to move sideways. Using price action data, this pair will most likely retrace back to the .7237 area

What do the indicators say?

For the AUD/USD, the predictive 18-day moving average is .7583 and the PRSI is 84.5.

For the NZD/USD pair, the predictive 18-day moving average is .7237 and the PRSI is 81.9.

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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