FOREX TRADERS

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VantagePoint Forex Weekly Outlook May 1st, 2017

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 market closed last week at 98.898 and has a key VantagePoint pivot area of 99.618 for the upcoming week.

What do the indicators say?
Neural index in a “zero” position but could be bailed out by predicted differences turning up.

The bearish movement may be bottoming out as predicted differences start to turn up.

RSI still showing bearish bias, but numbers support a move away from bearish momentum as it rises to 31.3.

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 $EURUSD
Key Levels and market movement:
The pair gapped up following the French election, but other movement is relatively sideways. Closed last week at 1.0893 and comes into the new week with a pivot level around 1.0755. When placing trades on Monday, remember Monday is a British bank holiday.

What do the indicators say?
Neural index in a “one” position. Predicted differences are turning to the downside, indicating potential overbought scenario.

MACD rising off the trigger and zero line.

RSI showing bullish momentum with a possibility for overbought symptoms with a 70.1 level.

U.S. Dollar/Swiss Franc $USDCHF
Key Levels and market movement:
The pair saw a slight selloff and closed at 0.9947. The key area to watch for this week will be 0.9973.

What do the indicators say?
VantagePoint neural index in a “zero” position while predicted differences are moving sideways.

MACD below the trigger and zero lines.

RSI showing bearish momentum with a 16.8 level (down from last week).

British Pound/U.S. Dollar $GBPUSD
Key Levels and market movement:
Still seeing the bullish movement we discussed in last week’s Forex Weekly Outlook that was triggered from the special Brexit vote announcement. The market movement shows bullish momentum after a 1.2946 close from last week. The key pivot area for this week is 1.2703.

What do the indicators say?
Neural index in a “one” position. Medium-term predicted difference crossed the long-term to the downside indicating there could be bearish bias in the coming week.

RSI is firmly indicating bullish momentum with a 90.4 level. That level is rarely seen and is a very strong overbought signal by VantagePoint.

U.S. Dollar/Japanese Yen $USDJPY
Key Levels and market movement:
A bullish week has pushed the market against the upper resistance line around 112.000. A clean break of this area could push levels up to the recent highs around 115.000. The key pivot level for this week is 110.347.

What do the indicators say?
Neural index in a “one” position and the predicted differences are still rising. They do not indicate an overbought scenario yet, but traders still need to pay close attention to the potential for one.

MACD is above the trigger, but still below the zero line with a -0.126 level.

RSI continued to rise to a 77.6 level. Another indication that the market is close to overbought.

U.S. Dollar/Canadian Dollar $USDCAD
Key Levels and market movement:
The pair skyrocketed following recent trade talks by President Trump. With levels approaching 12-month highs, the political rhetoric is keeping this pair rising, despite overbought signals. The key pivot area for this week is 1.3483. The further we move away from this number, the swifter the return will be.

What do the indicators say?
The neural index is in a “one” position. Medium-term predicted difference crossed the long-term to the downside.

RSI continued to rise to 85.5, a clear overbought signal. If politics releases its grasp on this pair, the indicators show signs of a needed corrective move.

Australian Dollar/U.S. Dollar $AUDUSD and New Zealand Dollar/U.S. Dollar $NZDUSD
Key Levels and market movement:
The Aussie came down to the resistance level around 0.7450 but is holding. The market closed at 0.7486 with a key pivot level of 0.7526 for the upcoming week. The New Zealand pair broke below the resistance level on its way to closing at 0.6864. The key VantagePoint pivot area for this pair is 0.6954.

What do the indicators say?
The neural index and predicted differences for AUD are showing some bullish bias. The RSI is trying to come out of bearish territory as it rises to 33.8.

The NZD has short-term indicators showing heavy bearish bias and has an RSI bottoming out at 16.5.

Watch the Full Video Analysis Video for these Currency Pairs HERE >>>>