Trading Support and Resistance - 13 January 2019

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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:

table0113012019

Monthly Forecast January 2018

For the month of January, we forecasted that the best trades would be short USD/JPY and long USD/CAD. The performance to date is as follows:

table0213012019

 

Weekly Forecast 13th January 2019

 

We made no forecast last week, as there were no exceedingly strong counter-trend moves. We again make no forecast this week.

Less than 15% of the important currency pairs or crosses moved by more than 1% in value over the past week. Volatility has decreased substantially and is likely to remain at a low level over the coming week.

This week has been dominated by relative strength in the Australian and New Zealand Dollars, and relative weakness in the U.S. 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:

table1213012019


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.