Trading Support and Resistance – AUD/JPY, EUR/USD, GBP/USD

[ad_1]

Get our trading strategies with our monthly & weekly forecast of currency pairs worth watching using support & resistance for the week of August 15, 2022.

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:

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

Currency Price Changes and Interest Rates

Monthly Forecast August 2022

For the month of August, I forecasted that the EUR/USD currency pair would decline in value. The result so far is shown below:

Currency Pair

Forecasted Direction

Interest Rate Differential

Performance to Date

EUR/USD

Short ↓

+2.00% (2.50% – 0.50%)

-0.30%

 

 

Monthly Forex Forecast Performance

Weekly Forecast 14th August 2022

This week, I forecast that the NZD/USD currency pair will fall in value over the week, as it made a strong counter-trend price movement last week.

The Forex market saw a much higher level of directional volatility last week, with 59% of all the important currency pairs or crosses moving by more than 1% in value. Directional volatility is likely to be at least a little lower over this coming week as although there are some key news releases scheduled, we are unlikely to see anything with as strong an impact on the market as last week’s US CPI data release.

Last week was dominated by relative strength in the Australian Dollar, and relative weakness in the US 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 watched on the more popular currency pairs this week.

Currency Pair

Key Support / Resistance Levels

AUD/USD

Support: 0.7085, 0.7063, 0.7010, 0.6951Resistance: 0.7141, 0.7213, 0.7248, 0.7275

EUR/USD

Support: 1.0240, 1.0220, 1.0202, 1.0073Resistance: 1.0280, 1.0305, 1.0362, 1.0382

GBP/USD

Support: 1.2100, 1.1958, 1.1926, 1.1878Resistance: 1.2206, 1.2243, 1.2338, 1.2386

USD/JPY

Support: 133.11, 132.65, 131.73, 130.00Resistance: 134.41, 135.32, 135.82, 136.59

AUD/JPY

Support: 94.67, 94.39, 93.61, 91.88Resistance: 95.23, 95.54, 96.16, 96.39

EUR/JPY

Support: 136.49, 135.72, 134.97, 134.03 Resistance: 137.74, 138.53, 140.22, 141.14

USD/CAD

Support: 1.2684, 1.2619, 1.2587, 1.2372Resistance: 1.2818, 1.2866, 1.2880, 1.2924

USD/CHF

Support: 0.9372, 0.9306, 0.9280, 0.9224Resistance: 0.9451, 0.9510, 0.9564, 0.9593

Let’s see how trading one of these key pairs last week off key support and resistance levels could have worked out:

AUD/JPY

We had expected the level at 93.24 might act as support, as it had acted previously as both support and resistance. Note how these “role reversal” levels can work well. The H1 chart below shows how the price broke above this level right at the the start of last Monday’s Asian session, and then tested it and rejected it from above with an engulfing candlestick marked by the up arrow signaling the timing of the bullish bounce. This trade has been very profitable, achieving a maximum positive reward to risk ratio of more than 3 to 1 so far based upon the size of the entry candlestick structure.

AUD/JPY Hourly Price Chart

AUD/JPY Hourly Price Chart

Ready to trade our weekly Forex forecast? Here are the best Forex brokers to choose from.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using xMetaMarkets services, please acknowledge all of the risks associated with trading.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 xMetaMarkets.com. All Rights Reserved.