Trading Support and Resistance – AUD/USD, EUR/USD

This week I will begin with my monthly and weekly Forex forecast of the currency pairs worth watching. The first part of my forecast is based upon my research of the past 20 years of Forex prices, which show that the following methodologies have all produced profitable results:

Let us 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:

For the month of October, I forecasted that the USD/JPY currency pair would gain in value.

The result so far is as follows:

Last week, I gave no weekly forecast, as there were no strong counter-trend price movements.

This week, I again make no forecast.

.Directional volatility in the Forex market remained low last week with only 11% of the most important currency pairs fluctuating over the week by more than 1%. Volatility is likely to increase over the coming week, as there will be a release of US CPI (inflation) data, which is usually the key item driving the Forex market.

Last week was dominated by relative strength in the Swiss Franc, and relative weakness in the Canadian Dollar.

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

I 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 can be monitored on the more popular currency pairs this week.

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