Trading Support And Resistance – Jan. 28

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:

  •  Trading the two currencies that are trending the most strongly over the past 3 months.
  • Assuming that trends are usually ready to reverse after 12 months.
  • Trading against very strong counter-trend movements by currency pairs made during the previous week.
  • Buying currencies with high interest rates and selling currencies with low interest rates.
  • 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:

    Monthly Forecast January 2018

    For the month of January, we forecast that the best trades will be long EUR/USD and long GBP/USD. The performance so far is as follows:

    For the month of February, we maintain long EUR/USD and GBP/USD.

    Weekly Forecast 28th January 2018

    Last week, we made no forecast. This week, we again make no forecast, as there were no strong counter-trend movements last week.

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

    Volatility was much higher than it was last week, with more than 40% of the major or minor currency pairs changing in value by more than 1%. Volatility is likely to be higher still over this coming week.

    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:

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


    • Total Score 0%
    User rating: 0.00% ( 0
    votes )

    Leave a Reply

    Your email address will not be published. Required fields are marked *