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:
Assuming that trends are usually ready to reverse after 12 months.
Trading against very strong counter-trend movements by currency pairs made during the previous week.
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 as follows:
Weekly Forecast 3rd March 2020
Last week, we made no weekly forecast. As there were again no large and clear counter-trend price movements, we again make no forecast this week.
The Forex market showed much more price activity last week, with 78% of the important currency pairs and crosses moving by more than 1% in value over the previous week. There were also several much larger price movements. Volatility is likely to remain high over this week and may even increase.
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:
That’s all for today. 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.