Trading Support and Resistance - 29 March 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:

Currency Price Changes and Interest Rates

Monthly Forecast March 2020

For the month of March, we forecasted that the best trade would be short AUD/JPY. The performance to date has been nicely profitable, as follows:

March Performance to Date

Weekly Forecast 29th March 2020

Last week, we made no weekly forecast. This week, we forecast that the EUR/AUD currency cross will rise in value over the coming week.

The Forex market is showing a similar level of price activity compared to the previous week, with 81% of the important currency pairs and crosses moving by more than 1% in value over the past week. This high level has not been seen for more than 11 years. Volatility is likely to remain high level over the coming weeks as the world grapples with the coronavirus pandemic.

Last week was dominated by relative strength in the British Pound, and relative weakness in the U.S. Dollar.

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

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The yen is a popular asset during turbulent times.

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 can be watched on the more popular currency pairs this week.

Key Support and Resistance Levels

AUD/JPY

We had expected the level at 67.60 might act as resistance, as it had acted previously as both support and resistance. Note how these “flipping” levels can work very well. The H1 chart below shows how near the beginning of last Wednesday’s London session, the price bounced strongly off that level, forming a bearish inside candlestick marked by the down arrow in the price chart below, which immediately broke to the downside. This trade has given a maximum reward to risk ratio so far of just a little more than 8 to 1.

AUD/JPY Weekly Chart

 

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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2 User comments
Admin@Daily_Forex
2020-03-30 11:54:45Z

HI Helen, you can join our DailyForex telegram channel for latest news updates, Forex analysis, articles for learning, broker reviews, signals and more here: https://t.me/dailyforex1

Helen
2020-03-29 05:03:03Z

How do I join your telegram group, to grow my $100 account...


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