Trading Support And Resistance - Sunday, Jan. 27

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:

TABLE0127012019

Monthly Forecast January 2018

For the month of January, we forecast that the best trades would be short USD/JPY and long USD/CAD. The performance to date is as follows:

 

table0227012019


Weekly Forecast January 27

We made no forecast last week, as there were no exceedingly strong counter-trend moves. We again make no forecast this week, as the movement in the British Pound looks set to continue rather than reverse.

About 44% of the important currency pairs or crosses moved by more than 1% in value over the past week. Volatility has remained steady and will probably be at a similar level over the coming week.

This week has been dominated by relative strength in the British Pound, and relative weakness in the U.S. Dollar.

Previous Monthly Forecasts

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:

table1227012019

Let’s see how trading two of these key pairs last week off key support and resistance levels could have worked out:

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