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 April 2018

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

    Weekly Forecast 22nd April 2018

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

    This week, we forecast that the GBP/SEK currency cross will rise in value.

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

    Volatility was the same as it was last week, with approximately 44% of the major or minor currency pairs changing in value by more than 1%. Volatility is likely to be similar or a little higher next week.

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

    Previous Monthly Forecasts

    You can view the results of our previous monthly forecasts here.

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