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 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 February 2018
For the month of February, we forecast that the best trades would be long EUR/USD and GBP/USD. The performance to date is as follows:
Weekly Forecast 25th February 2018
Last week, we made no forecast, as there were no strong counter-trend moves. This week, we again make no forecast, as there have been no strong counter-trend moves.
This week has been dominated by relative strength in the U.S. Dollar, and relative weakness in the New Zealand Dollar.
Volatility was a lower than it was last week, with only 11% of the major or minor currency pairs changing in value by more than 1%. Volatility is likely to be higher next 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:
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