Trading Support And Resistance - Sunday, May 30

10 and 20 us dollar bill

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 June 2021

For the month of June, we again forecast that the USD/CAD currency pair will fall in value, and the CAD/JPY currency cross will rise in value.

For the month of May, we made this same forecast. The performance so far has been nicely positive:

Monthly Forecast May 2021

Weekly Forecast May 30

Last week, we forecast that the EUR/NOK currency cross was likely to fall in value. Unfortunately, it rose very slightly, by 0.03%.

We make no weekly forecast this week, as there were no large counter-trend price movements in any important currency pairs or crosses.

The Forex market showed a slight decrease in its level of volatility last week, with 19% of the important currency pairs and crosses again moving by more than 1% in value. Volatility is likely to remain at a similar level over the coming week.

Last week was dominated by relative strength in the New Zealand dollar, and relative weakness in the Japanese yen.

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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Comments

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Alex Johnson 3 weeks ago Contributor's comment

Way too many support and resistance levels. Surely 1 of them will be true. It's a numbers game, if I predict 100 support levels and 100 resistance levels, surely out of 200 predictions at least 1 will be right.

Adam Reynolds 3 weeks ago Member's comment

Yes, it all comes down to being a numbers game.