Forex Weekly Outlook for March 19th, 2018

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:

There is a lot of sideways chop going on, and nothing appears to be settling down until the FOMC announcements. There is a very weak buy signal from VantagePoint, but it needs to break free from 90.60 to see stronger growth.

What do the indicators say?

The VantagePoint key level is at 89.50 and the VantagePoint PRSI is at 68.3.

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:

This pair has a slightly new low, but not much else has changed. It is clearly bearish and the predictive differences in VantagePoint are pointing lower. Additionally, the PRSI is suggesting there is momentum pointing to the downside.

What do the indicators say?

The key VantagePoint level is at 1.2321 and the PRSI is at 33.0.

U.S. Dollar/Swiss Franc (USD/CHF)
Key Levels and market movement:

If the Euro/US pair does, in fact, move lower, this will mean the USD/CHF pair will turn higher. It is correlated inversely to the EUR/USD. The strength of this pair will ultimately be determined by the Fed announcement. Traders should be cautious until at least Wednesday when the FOMC announces their new plans.

What do the indicators say?

The key VantagePoint level is at .9436 and the PRSI is at 69.8.

British Pound/U.S. Dollar (GBP/USD)
Key Levels and market movement:

Again, this pair is in a very tight wedge formation. But the PRSI is holding above the 60 area, indicating there is still some upside potential.

What do the indicators say?

The key VantagePoint level is at 1.3906 and the PRSI is at 64.3.

U.S. Dollar/Japanese Yen (USD/JPY)
Key Levels and market movement:

There remains little to no buying interest in this pair. Traders can look to sell this pair into rallies. This pair can go many different ways after the FED announcement so traders need to use caution.

What do the indicators say?

The key VantagePoint level is at 106.66 and the PRSI is at 30.5.

The Commodities Currencies

U.S. Dollar/Canadian Dollar (USD/CAD)
Key Levels and market movement:

The USD/CAD has an overbought condition, but anything can happen with this pair once the FEDs make their announcements.

What do the indicators say?

The key VantagePoint level is at 1.2862 and the PRSI is at 86.5.

Australian Dollar/U.S. Dollar (AUD/USD)
Key Levels and market movement:

There is a known button around the .77 level. Simply put, if gold starts to turn higher, so will this pair.

What do the indicators say?

The key VantagePoint level is at .7827 and the PRSI is at 23.1.

New Zealand Dollar/U.S. Dollar (NZD/USD)
Key Levels and market movement:

This pair is virtually the same trade at the AUD/USD. There is a known bottom around the .7180 area. Just like with previous pairs, the FED announcements will have a huge effect on what happens next.

What do the indicators say?

The key VantagePoint level is at .7284 and the PRSI is at 24.9.

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