Trading support and resistance

Get our trading strategies with our monthly and weekly forecasts of currency pairs to watch using support and resistance for the week of January 3, 2022.

This week I’ll start with my monthly and weekly forecasts for currency pairs to watch. The first part of my prediction is based on our research of Forex prices for the past 20 years, which shows that the following methodologies have all produced profitable results:

Let’s take a look at the relevant data on currency price changes and interest rates to date, which we’ve compiled using a trade-weighted index of major global currencies:

Monthly forecasts January 2022

For the month of January, I think it will be wise to wait and see how the markets perform in the first week of this new year before making any predictions.

For the month of December, I had forecast that the GBP / USD and EUR / USD currency pairs would drop in value. The final performances are shown below:

Weekly forecast 2^sd January 2022

In my previous forecast last week, we didn’t make any weekly forecasts, as there hadn’t been any unusually strong countertrend moves. Mitigating strong weekly price countertrend movements is the basis of our weekly trading strategy.

We are not making any weekly forecasts again as there has not been any significant countertrend price movement in the Forex market in the past week.

The Forex market has seen a decline in its directional level volatility Last week, due to the complete lack of high impact data release, with only 30% of all major currency pairs or crosses moving more than 1% in value. Directional volatility is likely to increase this week as we start a new year and get FOMC meeting minutes and non-farm wage data.

The past week was dominated by the relative strength of the Canadian dollar and the relative weakness of the Japanese yen.

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

Key support / resistance levels for popular pairs

We teach that trades must be entered and exited at or very near the key support and resistance levels. Some key support and resistance levels can be seen on the most popular currency pairs this week.

It’s all for this week. You can trade our forecasts into a real or demo Forex brokerage account to test the strategies and build your confidence before investing real funds.