Trading Support And Resistance - Sunday, May 31

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 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 2020

For the month of June, we forecast that the best trade will be long EUR/USD.

For the month of May, we forecasted that the best trade would be short USD/JPY. The final performance is shown in the table below:

May 2020 Final Performance

Weekly Forecast May 31

Last week, we forecast that the NZD/JPY currency cross was likely to fall in value. Unfortunately, it rose in value by 1.96%.

This week, we make no forecast as there were no strong counter-trend movements over the past week.

The Forex market is showing a similar level of price activity compared to the previous week, with 52% of the important currency pairs and crosses moving by more than 1% in value over the past week. Volatility is likely to remain at a similar level or perhaps be a little higher over the coming week.

Last week was dominated by relative strength in the Canadian Dollar, and relative weakness in the U.S. 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 can be watched on the more popular currency pairs this week.

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