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:
- Trading the two currencies that are trending the most strongly over the past 6 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.
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:
Monthly Forecast April 2023
For the month of April, I forecasted that the EUR/USD and GBP/USD currency pairs would rise in value.
The performance of my forecast so far this month is as follows:
Weekly Forecast 9th April 2023
Last week, I made no weekly forecast, as there were no unusually strong counter-trend price movements in the Forex market the previous week. The situation remains the same, so I again give no weekly forecast this week.
Directional volatility in the Forex market is likely to increase significantly over the coming week, as there are several very high-impact data releases scheduled, including US inflation data and the FOMC meeting minutes.
Last week was dominated by relative strength in the Swiss Franc, and relative weakness in the Australian Dollar.
You can trade my forecasts in a real or demo Forex brokerage account.
Key Support/Resistance Levels for Popular Pairs
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.
Ready to trade our Forex weekly forecast? Here’s a list of some of the best Forex trading platforms to check out.