Trading Support And Resistance – Dec. 17

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:

· 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 December 2017

For the month of December, we forecasted that the best trades would be long EUR/USD, long GBP/USD, and long USD/JPY. The performance so far is as follows:

Weekly Forecast December 17, 2017

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

This week, there were several strong counter-trend movements, so we forecast that over the coming week, the GBP/AUD and GBP/NZD currency crosses will rise in value, while the NZD/USD currency pair will fall in value.

This week has been dominated by relative strength in the New Zealand Dollar, and relative weakness in British Pound

Volatility was slightly higher, with 29% of the major or minor currency pairs changing in value by more than 1%. Volatility is likely to be about the same over this coming week. You can trade our forecasts in a real or demo Forex brokerage account.

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

 that should be watched on the more popular currency pairs this week, which might result in either reversals or breakouts: