Trading Support And Resistance - Sunday, Feb. 7

Coins, Banknotes, Money, Currency, Finance, Cash

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 February 2021

For the month of February, we forecast that the USD/JPY currency pair will be likely to rise in value following a daily close above 105.00.

The current performance of this forecast is shown in the table below:

Monthly Forecast February 2021

Weekly Forecast February 7

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

This week, we again make no forecast, as there were no strong counter-trend movements in the Forex market whatsoever.

The Forex market showed a higher level of volatility compared to the previous week, with 26% of the important currency pairs and crosses moving by more than 1% in value last week. Volatility is likely to increase over the coming week.

Last week was dominated by relative strength in the British pound, and relative weakness in the euro.

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.

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Disclosure: You can trade our forecasts in a real or demo Forex brokerage ...

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