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Vantagepoint Forex Weekly Outlook for the Week of March 18th, 2019

The Vantagepoint Forex Weekly Outlook is designed to help traders. It’s important to remain aware of correlations in the global markets. Traders can become more profitable if they know how to get ahead of the trends. Utilizing the predictive indicators in VantagePoint Software can help traders find the right trades and the right times. Above all, traders know when to enter and exit those trades for maximum profit. Let’s look at the charts for the U.S. Dollar, Gold, Crude Oil The Stock Market and the Major Pairs.

The important currency pairs are rangebound and have been for quite some time. The U.S. Dollar Index is the backbone of forex trading. The event risk in this market is the FOMC meeting on March 19. Sideways markets going into the FOMC markets highlights the risk.

The US Dollar Index

The U.S. Dollar Index has been rangebound for many, many weeks. The Dollar weakens going into mid-month and strengthens towards the end of the month. For the last four months when you look at the Dollar as measured against all of the major crosses you will see that it has been in a relatively narrow trading range. The Vantagepoint indicators are pointing lower for the dollar but traders need to be nimble in this market as the trading ranges have been narrow. We are anticipating support at the 95.82 zone on the Dollar Index.

The Gold Market

Gold is considered to be the currency of last resort and the ultimate store of value. When we look at Gold for clues we also see a market that is in an uptrend but struggling to maintain its upward bias. There is very strong support in Gold at 1284 with very strong resistance at $1349. Currently, the trend in gold is down and we are paying attention to how the market reacts as it approaches the lower end of its channel. During the last 5 days, the trend has been sideways. Over the last month, the trend has been very slightly down. While the last three months, the trend has been very marginally higher. Traders are looking to buy weakness as long as the trend indicators remain positive.

Forex Weekly Outlook for Major Pairs

We analyze price action, as well as news events and/or risk off scenarios. All those play a role in market movement. VantagePoint Software reviews the Forex Weekly Outlook each Monday.

S&P 500

If you look at the S&P 500 over the last several months we see a lot of overhead resistance. The market has rallied nicely off the December lows. But it also has been unable to move higher than the highs from last October. The market has the feel of the classic bull trap from a clear charting perspective. However, the VP indicators have been long since early January. Traders are cautious as we approach recent highs. We expect additional volatility at these levels.

Crude Oil

Is following the Equity markets. The recent rallies in Crude Oil have put it at a significant resistance area. The indicators are positive but the wall of resistance overhead is also forcing traders to be extremely cautious.

Euro/U.S. Dollar (EUR/USD)

Desperately seeking direction at this level. 1.1419 is the high and current resistance. Current support is the low posted 8 sessions ago at 1.1176. The trend is up and traders are expecting volatility from the FOMC meeting.