Trading Support and Resistance

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 16 years of Forex prices, which show that the following methodologies have all produced profitable results:

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:

table01

Monthly Forecast November 2018

For the month of November, we forecasted that the best trade would be short EUR/USD. The performance to date is as follows:

TABLE02

Last week, we forecasted that the AUD/JPY currency pair would fall in value. Unfortunately, it rose in value by 0.91%.

Weekly Forecast 11th November 2018 

This week, we make no forecast as there was no strong counter-trend moves.

Less than 15% of the important currency pairs or crosses moved by more than 1% in value over the past week. This volatility is decreasing, and we expect it to be at a similar level or possible even lower over the coming week.

This week has been dominated by relative strength in the New Zealand Dollar, and relative weakness in the Canadian Dollar.

You can trade our forecasts in a real or demo Forex brokerage account.

Previous Monthly Forecasts

You can view the results of our previous monthly forecasts here.

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:

TABLE12


That’s all for this week. 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.

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.