Forex Weekly Outlook for March 26th, 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:

With the holiday this week, there won’t be a lot of big moves. But instead, it will be more about range trading. It’s at a make or break area in a tight channel around that 89 area. But just looking at the Predictive RSI, the dollar is under a lot of pressure.

What do the indicators say?

The VantagePoint key level is at 89.435 and the VantagePoint PRSI is at 22.9.

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 been range trading. But with a double bottom put in place last week, the pair has moved higher.

What do the indicators say?

The key VantagePoint level is at 1.2320 and the PRSI is at 66.8.

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

Key Levels and market movement:

There’s been a good move up off the dollar weakness. But the PRSI is showing that the pair is moving into overbought territory.

What do the indicators say?

The key VantagePoint level is at 1.3983 and the PRSI is at 90.6.

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

Key Levels and market movement:

Three words can describe this pair—sell sell sell. If there is any backtrack from President Trump’s, this pair has the chance to turn around. But otherwise it will keep falling, and the indicators in VantagePoint are supportive of that.

What do the indicators say?

The key VantagePoint level is at 106.24 and the PRSI is at 14.0.

The Commodities Currencies

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

Key Levels and market movement:

The USD/CAD had a big selloff from that recent top. This is mainly from US dollar weakness and rising oil prices. As soon as oil broke higher, this pair went lower. But if oil can move lower, this pair will go higher.

What do the indicators say?

The key VantagePoint level is at 1.2906 and the PRSI is at 36.2.

Australian Dollar/U.S. Dollar (AUD/USD)

Key Levels and market movement:

This pair is coming into a well-known buy zone. There is a strong trend line coming in around the .7680 area. Longs will carry a very slight edge.

What do the indicators say?

The key VantagePoint level is at .7771 and the PRSI is at 26.7.

New Zealand Dollar/U.S. Dollar (NZD/USD)

Key Levels and market movement:

This pair is in a very firm range. The NZD/USD is trying to close above the VantagePoint key level but it’s struggling.

What do the indicators say?

The key VantagePoint level is at .7256 and the PRSI is at 44.0.