Technical Analysis Weekly Forex Forecast Trading Support & Resistance - 6 August 2017 Trading Support & Resistance - 6 August 2017 Sunday, 6 August 2017 10:32 Share 0 Tweet 0 Pin it 0 +1 By: DailyForex.com This week we’ll begin with our monthly and weekly forecasts of the currency pairs worth watching. The first part of our forecast is based upon our research of the past 11 years of Forex prices, which show that the following methodologies have all produced profitable results: · Trading the two currencies that are trending the most strongly over the past 3 months. · Assuming that trends are usually ready to reverse after 12 months. · Trading against very strong counter-trend movements by currency pairs made during the previous week. · Buying currencies with high interest rates and selling currencies with low interest rates. Let’s take a look at the relevant data of currency price changes and interest rates to date, which we compiled using a trade-weighted index of the major global currencies: Monthly Forecast August 2017 For the month of August, we forecasted that the best trades would be long EUR/USD and AUD/USD, and short USD/CAD. The performance to date is negative: Weekly Forecast 6th August 2017 Last week, we made no forecast, as there were no strong counter-trend movements. This week, we again make no forecast, as there again were no strong counter-trend movements. This week has been dominated by relative strength in the U.S. Dollar and the Euro, and relative weakness in the Canadian and New Zealand Dollars. Volatility was a little higher than last week, with approximately 30% of the major and minor currency pairs changing in value by more than 1%. Volatility is likely to be considerably lower over this coming week. You can trade our forecasts in a real or demo Forex brokerage account. Key Support/Resistance Levels for Popular Pairs We teach that trades should be entered and exited at or very close to key support and resistance levels. There are certain key support and resistance levels that should be watched on the more popular currency pairs this week, which might result in either reversals or breakouts: Let’s see how trading one of these key pairs last week off key support and resistance levels could have worked out: EUR/JPY We had expected the level at 129.56 might act as support, as it had acted previously as both support and resistance. Note how these “flipping” levels can work well. The H1 chart below shows the how the price bounced bullishly off this level shortly after last Monday’s Tokyo Open, which is typically a good time to trade this currency pair, printing a double inside candlestick formation shown in the chart below at the upwards arrow, which broke and gave a very good long trade entry opportunity. This trade would have been a good winner with an excellent maximum reward to risk ratio greater than 6 to 1 so far. You can trade our forecasts in a real or demo Forex brokerage account to test the strategies and strengthen your self-confidence before investing real funds. Currency Pairs EUR/JPY Adam Lemon Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.