Trading Support and Resistance

Get our trading strategies with our monthly & weekly forecasts of currency pairs worth watching using support & resistance for the week of April 26, 2021.

This week we will 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 18 years of Forex prices, which show that the following methodologies have all produced profitable results:

Let us 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 2021

For the month of April, we again forecasted that the USD/JPY currency pair will rise in value, while the EUR/USD currency pair will fall. The performance so far is negative:

Monthly Forecast April 2021

Weekly Forecast 25th April 2021

Last week, we made no weekly forecast, as there were no unusually strong counter-trend price movements in the Forex market. This week, we again make no forecast.

The Forex market showed another decrease in its level of volatility last week, with not one of the important currency pairs and crosses moving by more than 1% in value. Volatility is likely to rise over the coming week.

Last week was dominated by relative strength in the euro, 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 can be watched on the more popular currency pairs this week.

Key Support and Resistance Levels

Let us see how trading reversals from one of last week’s key levels would have worked out:

EUR/USD

We had expected the level at 1.1943 might act as support, as it had acted previously as both support and resistance. Note how these “flipping” levels can work well. The H1 chart below shows how the price rejected this level with a bullish inside candlestick which early during last Monday’s New York session, marked by the up arrow in the price chart below. This trade has been very profitable, achieving a maximum positive reward to risk ratio so far of more than 9 to 1 based upon the size of the entry candlestick structure.

EUR/USD Hourly 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.