Trading Support and Resistance

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 April 2020

For the month of April, we forecast that the best trade will be short AUD/USD.

For the month of March, we forecasted that the best trade would be short AUD/JPY. The performance was strongly profitable, as shown below:

March Final Performance

Advertisement
Heavy swings in the dollar make highly profitable trades
Make Your Move Now!

Weekly Forecast 5th April 2020

Last week, we forecasted that the EUR/AUD currency cross would rise in value over the coming week. In fact, it fell very slightly, by only 0.17%.

This week, we make no forecast, as there were no strong counter-trend price movements over the past week.

The Forex market is showing a slightly lower level of price activity compared to the previous week, with 74% of the important currency pairs and crosses moving by more than 1% in value over the past week. This relatively 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 U.S. Dollar, 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 can be watched on the more popular currency pairs this week.

 Key Support and Resistance Levels

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.

About the Author
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

Comments

Did you have a good experience with this broker? A bad one? Tell our team and traders worldwide about your experience in our User Reviews tab. Your email address will not be posted.

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.