Trading Support And Resistance - Sunday, Dec. 30

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 take a 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:

 

table0130122018

Monthly Forecast December 2018

For the month of December, we forecast that the best trades would be short EUR/USD, short GBP/USD, and long USD/JPY.

The performance to date is as follows:

table0212302018

For the month of January, we forecast that the best trades will be short USD/JPY and long USD/CAD. 

Weekly Forecast December 30, 2018

We made no forecast last week, as there were no exceedingly strong counter-trend moves. We again make no forecast this week.

Only 11% of the important currency pairs or crosses moved by more than 1% in value over the past week. Volatility has decreased substantially, but it is quite likely to rise at the end of this week.

This week has been dominated by relative strength in the Swiss Franc, and relative weakness in the Australian Dollar.

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:

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Disclosure: You can trade our forecasts in 

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