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This week we will start with our monthly and weekly forecasts of currency pairs worth watching. The first part of our forecast is based on our research of Forex prices over the past 16 years, which show that the following methodologies have all produced profitable results:
Let's take a look at the relevant data on currency price movements and interest rates to date, which we have compiled using a trade-weighted index of the world's major currencies:
Monthly Forecast January 2018
For the month of January, we had forecast that the best transactions would be USD / JPY short positions and USD / CAD positions. The performance so far is as follows:
Weekly forecasts 20th January 2019
We did not make any predictions last week because there were no extremely strong counter-trend movements. We are not making any predictions this week.
About 41% of currency pairs or major crosses have moved more than 1% in value over the past week. Volatility has increased significantly and is expected to remain at a similar level over the coming week.
This week was dominated by the relative strength of the pound sterling and the relative weakness of the Japanese yen.
You can exchange our forecasts in a real Forex brokerage account or demo.
Previous monthly forecasts
You can see the results of our previous monthly forecasts right here.
Key levels of support / resistance for popular pairs
We teach that trades must be entered and exited at a level very close to key levels of support and resistance. There are some key levels of support and resistance this should be watched on the most popular currency pairs this week, which could lead to reversals or breakouts:
GBP / USD
Let's see how to exchange two of these key pairs last week key levels of support and resistance could have worked:
We expected the 1.2918 level to be a resistance, as it had previously served as both support and resistance. Note how these levels of "flipping" can work well. Chart H1 below shows how the price rejected this level just after London closed last Monday, marked by the down arrow in the graph below, forming a bearish effect. candlestick on the inside which broke down right away before taking a little time to finally decisive. Such candlesticks are often useful indicators of turnarounds when their wicks or the wick of the structure reject key levels. This trade has been profitable, reaching a positive maximum reward / risk ratio more than 2 to 1.
AUD / USD
We expected that the level at 0.7147 could be used as support, as it had already been used both as support and as resistance. Note how these levels of "flipping" can work well. Chart H1 below shows how the price rejected this level just after the opening of London last Thursday, marked by the rising arrow of the price chart below, forming a bearish effect. engulfing candlestick which broke out at the beginning of the London session. Such candlesticks are often useful indicators of turnarounds when their wicks or the wick of the structure reject key levels. This trade has been profitable, reaching a positive maximum reward / risk ratio from a little under 4 to 1 until now.
It's all for this week. You can exchange our forecasts in a real Forex brokerage account or demo test strategies and build your self-confidence before investing in real funds.
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