VantagePoint Forex Weekly Outlook for July 31st, 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 clearly under selling pressure, especially in the last 3-4 weeks.  The main selloff started in May, and it has continued. The dollar could get some relief on Friday with the payroll numbers, but that is it. Traders should wait for the ADP report on Friday and payroll numbers on Wednesday as a safe play.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 94.446. The neural index is at a “zero” position and the VantagePoint PRSI is at 5.3. All the VantagePoint indicators have yet to give a buy signal to traders.

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 had a good rally the past few months. But the pair is moving into heavily overbought territory.   Traders shouldn’t look for any big moves in this pair right now until that payroll numbers come out later this week. If the Dollar retraces back to a bearish cycle, the Euro will advance in a bullish trend.

What do the indicators say?

The predictive 18-day moving average is 1.1547 and the PRSI is at 90.2. The neural index is at a “one” position indicating short-term strength.

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

Key Levels and market movement:

This pair typically mirrors the USD/EUR pair, however, the pair has started to move higher which is very strange. Traders should look to be selling into rallies.

 What do the indicators say?

The PRSI is at a 67.9 and the predictive 18-day moving average is at .9594. But the neural index is at a “one” position indicating the potential for short-term strength.

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

Key Levels and market movement:

The Pound/Dollar pair is still undervalued with Brexit helping, not hurting, this pair. The Predictive MACD is sitting at a great position for traders to start taking long positions, as is the PRSI. Despite payroll numbers, traders can look to remain buyers in those market dips.

What do the indicators say?

The VantagePoint predictive 18-day moving average is at 1.3003 and the PRSI is at 77.2. Traders should watch the PRSI around the 40 level before there is any downward momentum for this pair.

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

Key Levels and market movement:

The break of the 40 level on the PRSI really set off a trigger and there was a retracement right back to that key VantagePoint level. Savvy traders are looking for good short opportunities this week based on the VantagePoint indicators and retracement back to the 111 level. However, the pair is highly susceptible to the payroll announcements this week.

What do the indicators say?

The PRSI is at 24.1 and the predictive 18-day moving average is at 111.931

The Commodities Currencies

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

Key Levels and market movement:

The pair continues to move lower, even though it’s been oversold for a while. The rate hike by the Bank of Canada continues to influence this pair and the bearish trend.

What do the indicators say?

The VantagePoint predictive 18-day moving average is 1.2673 and the PRSI is 16.5

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, it continues to climb. But like all pairs, the fed announcement later this week is expected to influence the pair. It doesn’t mean the trend is over, but traders should look for buying opportunities between .7937 and .7846 this upcoming week.

For the NZD/USD pair, it follows the AUD/USD pair. The pair has had a big move up. However, the further this pair moves away from the VantagePoint key levels, the more likely there is going to be a retracement back to that level.

What do the indicators say?

For the AUD/USD, the predictive 18-day moving average is .7846 and the PRSI is 80.3

For the NZD/USD pair, the predictive 18-day moving average is .7379 and the PRSI is 80.5

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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