Trading Support and Resistance - 23 December 2018

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:

table0123122018

Monthly Forecast December 2018

For the month of December, we forecasted that the best trades would be short EUR/USD, short GBP/USD, and long USD/JPY.

The performance to date is as follows:

table022312018

Two weeks ago, we forecasted that the EUR/AUD currency cross was likely to fall in value. It did fall that week, by 0.63%, producing a winning trade. We make no forecast this week, as there were no exceedingly strong counter-trend moves last week.

Weekly Forecast 23rd December 2018

More than half of the important currency pairs or crosses moved by more than 1% in value over the past week. Volatility has increased substantially, as is likely to remain relatively high this week despite the holidays.

This week has been dominated by relative strength in the Japanese Yen and relative weakness in the Australian 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:

table1223122018
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.