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 16 years of Forex prices, which show that the following methodologies have all produced profitable results:
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 November 2018
For the month of November, we forecast that the best trade would be short EUR/USD. The performance to date is as follows:
Weekly Forecast
Last week, we made no forecast as there was no strong counter-trend moves. This week, we again make no weekly forecast.
Less than 30% of the important currency pairs or crosses moved by more than 1% in value over the past week. This volatility is decreasing, but we expect it is likely to increase this coming week.
This week has been dominated by relative strength in the Swiss Franc, and relative weakness in the Australian Dollar.
Previous Monthly Forecasts
You can view the results of our previous monthly forecasts here.
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 should be watched on the more popular currency pairs this week, which might result in either reversals or breakouts:
USD/CHF
Let’s see how trading one of these key pairs last week off key support and resistance levels could have worked out:
