Trading Support And Resistance - Sunday, Dec. 9

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:

Chart 1

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:

Chart 2

Weekly Forecast December 9  

Last week, we made no forecast as there were no strong counter-trend moves.

This week, we forecast that the EUR/AUD currency cross is likely to fall in value.

Less than 26% of the important currency pairs or crosses moved by more than 1% in value over the past week. This volatility is approximately constant, but we expect it is likely to increase this coming week.

This week has been dominated by relative strength in the Japanese Yen 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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