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 11 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 November 2015

    This month we forecast that the most probable movements are short AUD/JPY and AUD/NZD. This forecast has performed negatively so far, as shown below:

    Weekly Forecast 15th November 2015 

    Last week, we forecasted that the AUD/NZD pair would fall in value. In fact it rose in value by 0.76%.

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

    This week saw strength in the GBP and AUD, and the greatest relative weaknesses was in the CHF.

    Volatility was lower than the previous week. Approximately 85% of the major and minor currency pairs changed in value by less than 1%. Volatility is likely to be higher this this week as there are central bank events scheduled for the USD, JPY and AUD.

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

    Key Support/Resistance Levels for Popular Pairs

    At the FX Academy, 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: