Trading Support and Resistance

  


Get our trading strategies with our monthly & weekly forecast of currency pairs worth watching using support & resistance for the week of September 5, 2021.

This week we will 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 18 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 weekly counter-trend movements by currency pairs made during the previous week.

  • Carry Trade: Buying currencies with high interest rates and selling currencies with low interest rates.

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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:

Currency Price Changes and Interest Rates

Monthly Forecast September 2021

For the month of September, we forecast that if the EUR/USD currency pair ends a week above 1.1908, it will be likely to rise further over the rest of the month.

Weekly Forecast 5th September 2021

Last week, we forecasted that the AUD/USD currency pair was likely to fall in value. Unfortunately, it rose quite strongly over the week, by 2.00%.

This week, we make no weekly forecast, as there were no unusually strong counter-trend movement last week.

The Forex market saw a lower level of volatility last week, with 37% of all the important currency pairs or crosses moving by more than 1% in value. Volatility is likely to be higher over the coming week, so it is likely to be a good time to trade.

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Last week was dominated by relative strength in the Australian dollar, and relative weakness in the Swiss franc.

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 key support and resistance levels that can be watched on the more popular currency pairs this week.

Key Support and Resistance Levels


That is all for this week. You can trade our forecasts in a real or demo Forex brokerage account to test the strategies and strengthen your self-confidence before investing real funds.

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