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 11 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 2016
This month, we forecast that the AUD, CAD and EUR will rise in value against the USD.
Weekly Forecast 3rd April 2016
Last week, we made no forecast.
This week, we make no forecast, as there were no strong counter-trend moves over this past week.
This week has seen strength in the Euro, Canadian, Australian and New Zealand Dollars, and weakness primarily in the U.S. Dollar and also the British Pound.
Volatility was greater than the previous week, with about 60% of the major and minor currency pairs changing in value by more than 1%. Volatility is likely to be the same or even higher this coming week.
You can trade our forecasts in a real or demo Forex brokerage account.
Key Support/Resistance Levels for Popular Pairs
At the FX Academy, 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 should be watched on the more popular currency pairs this week, which might result in either reversals or breakouts:
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