Trading Support And Resistance - Sunday, Oct. 18

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 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 October 2020

This month, we forecast that the USD/JPY currency pair was likely to fall in value. Its performance to date is as follows:

USD/JPY

Weekly Forecast October 18 

Last week, we made no weekly forecast, as there were no very strong counter-trend price movement to exploit.

This week, we forecast that the AUD/USD is likely to rise in value.

The Forex market showed a very similar level of volatility compared to the previous week, with only 32% of the important currency pairs and crosses moving by more than 1% in value last week. Volatility is likely to be at a slightly higher level this week.

Last week was dominated by relative strength in the Japanese Yen and relative weakness in the Australian Dollar.

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.

Key Support and Resistance Levels

Let us see how trading a reversal from two of last week’s key levels would have worked out:

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

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