Trading support and resistance

Trend volatility is likely to ease over the next week as there are no major central bank releases.

I’ll start this week with my monthly and weekly forecasts of currency pairs worth following. The first part of my forecast is based on my research in the last 20 years of forex pricing, which shows that the following methodologies have yielded profitable results:

• Trade the two currencies with the strongest trend over the past six months.
• trade against Strong weekly movements in the opposite direction Through the currency pairs made over the past week.
• Currency Carry (Carry Trade): Buying currencies with high interest rates and selling currencies with low interest rates.

Let’s see the relevant data for the development of currency rates and interest rates So far, which we compiled using a trade-weighted indicator of the major global currencies:

Monthly forecast October 2022

For October, I was expecting it to be Currency pair US dollar / Japanese yen It would increase its value. The result so far is shown below:

Weekly forecast 16 October 2022

Last week, I predicted that EUR/NOK currency cross Likely to appreciate. Unfortunately, it is down 0.76%. This week, I am not making any weekly forecasts, as there were no unusually strong price moves against the trend last week.

Forex market experienced a Increase trend volatility last week, As 59% of the major currency pairs and cross pairs move more than 1% in value. Trend volatility is likely to ease over the next week, As there are no major issuances from central banks.

The relative strength of the British pound and the US dollar, and the relative weakness of the Japanese yen and the Australian dollar, dominated last week.

You can trade my predictions with Real or demo forex trading account.

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Key support/resistance levels for popular pairs

I know you have to get in and out of processes in Key support and resistance levels or very close to them. There are some key support and resistance levels to watch in the most popular currency pairs this week.

Let’s see how two of these major pairs traded last week from their key support and resistance levels:

EUR / USD

We were expecting the $0.9643 level to act as support on EUR/USD . currency pair last week, It has also previously acted as support and resistance. Notice how well these levels of “turning around” can work. The H1 price chart below shows how The price rejected this level with the end of the New York session last Thursday with a bullish internal candle, It is marked by the ascending arrow that indicates the moment of bullish rejection. This process was profitableInvestigation Maximum positive risk ratio to more than 1 to 1 So far, based on Entry candle structure size.

British Pounds / US Dollars

We were expecting the $1.0942 level to act as support on Currency pair GBP/USD last weekIt has previously acted as support and resistance. Notice how well these levels of “turning around” can work. The H1 price chart below shows how The price rejected this level during the Tokyo session last Wednesday with a small inside candle, It is marked by the ascending arrow that indicates the moment of bullish rejection. This process was very profitableInvestigation Maximum positive risk ratio to more than 12 to 1 Based on the size of the entry candle structure.

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