Trading Support and Resistance - 5 January 2020

Adam Lemon

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 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 January 2020

For the month of December, we forecasted that the best trade would be long USD/JPY. The final performance was:

table02

For the month of January, we forecasted that the best trades would be long EUR/USD and long NZD/USD. The performances to date are as follows:

table022

Weekly Forecast 5th January 2020

We made no weekly forecast last week, and we do the same this week, as there were no strong counter-trend movements last week.

The Forex market has shown very slightly increased activity, with 22% of the important currency pairs and crosses moving by more than 1% in value over the past week. Volatility is likely to be higher over the coming week.

Last week was 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:

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 Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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