FOREX TRADERS

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Weekly Forex Analysis & Outlook Video for Major FX Pairs

In the latest Forex Weekly Outlook, we take a closer look at the relationship between the major pairs and the IDX market. This relationship is one of the backbones of the forex markets and understanding whether a pair is directly, or inversely correlated with the IDX will give traders a better opportunity to get ahead of upcoming trends.


Forex and the U.S. Dollar

The U.S. Dollar Index peaked early in the week and saw heavy resistance before ending the week at 100.463. The IDX got as high as 101.250 early in the week before falling to the resistance. The key level for this week is 100.521. We know the IDX is highly correlated with the global indices. Their bearish trends heavily weigh upon last week’s downward momentum. It’s also important to pay attention to common intermarkets like oil and gold as well.

Forex Weekly Outlook for Major Pairs

Euro/U.S. Dollar $EURUSD had a bullish start to last week before ending the week with two bear days. The pair closed the week at 1.0610 and has a key VantagePoint level of 1.0603 for the coming week. The pair saw considerable support around the 1.0575 area as it was tested three days in a row. This week’s French elections will be a news event that traders should pay close attention to when trading this pair this week.

U.S. Dollar/Swiss Franc $USDCHF looks very similar to IDX this week as it closed at 1.0047. We see the VantagePoint predicted moving average is sitting right on top of the simple moving average. Conversely to the EUR/USD, we see a three-day stretch testing the resistance level around 1.0100. We could see levels try and test that again this week.

British Pound/U.S. Dollar $GBPUSD saw a triple EMA crossover last week on its way to a 1.2518 close. We saw a test of the support line multiple times in recent weeks. Every time the trend line has held. When we compare this pair with the IDX, we can see the inverse relationship between the two. AS the IDX began to fall in mid-March, we see GBP/USD trend higher a few days later.

U.S. Dollar/Japanese Yen $USDJPY saw the support line fail last week as the market fell to a 108.553 close. This recent trend differs from recent data that suggest a direct correlation between the IDX and USD/JPY. VantagePoint forecasts next week’s key level to be 109.117 with shorts maintaining the edge if the market remains below that level.

The Commodities Currencies

U.S. Dollar/Canadian Dollar $USDCAD continued its sideways trading that has been in place for almost a month. The pair closed at 1.3320 and comes into this week with a key level of 1.3320. We have strong support around the 1.3250 level that was tested twice last week. We had a triple EMA cross in early April and are starting to see the current trading wedge narrow.

New Zealand Dollar/U.S. Dollar $NZDUSD bounced off the support trend line midweek to close at 0.6978. VantagePoint seems to be forecasting a flat week with a key level coming in this week at 0.6974.

Australian Dollar/U.S. Dollar $AUDUSD saw a triple EMA cross to the upside last week on its way to a 0.7568 close. We see an active inverse relationship with the IDX in play with this pair. AS IDX was testing the upper resistance line, AUD/USD was testing the lower support line.

Watch Full Video Analysis HERE >>>>>>