Get our trading strategies with our monthly and weekly forecasts of currency pairs to watch using support and resistance for the week of June 28, 2021.

Publicity

This week we will start with our monthly and weekly forecasts of currency pairs worth watching. The first part of our forecast is based on our research of Forex prices over the past 18 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:

Currency price changes and interest rates

Monthly Forecast June 2021

For the month of June, we had forecast that the USD / CAD currency pair would fall and the CAD / JPY currency pair would rise. The forecast performance to date is shown below:

Monthly Forecast June 2021
Weekly forecasts 27e June 2021

Last week we didn’t make any weekly predictions as there hasn’t been any significant countertrend price movement in currency pairs or significant crosses.

We are not making any predictions again this week.

The Forex market saw its level of volatility stay roughly the same last week, as I expected, with 41% of major currency pairs and crosses again moving over 1% in value. Volatility is expected to be lower in the coming week through Friday, when it could rise sharply due to the release of non-farm wage data at that time..

The past week has been dominated by the great relative strength of the New Zealand dollar and the relative weakness of the Japanese yen.

You can exchange our forecasts by a real or demo Forex brokerage account.

Previous monthly forecasts

You can consult 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 near key support and resistance levels. There are some key support and resistance levels which can be watched on the most popular currency pairs this week.

Key support and resistance levels

Let’s see how the trading reversals of two of last week’s key levels would have worked:

EUR / USD

We expected the 1.1851 level to be able to act as support, as it had previously acted as both support and resistance. Note how these “reversible” levels can work well. The H1 chart below shows how the price rejected this level with an uptrend engulfing candlestick during last Monday’s Asian session, marked by the up arrow in the price chart below. This trade has been very profitable due to the relatively strong price reversal seen last week, reaching a positive high reward / risk ratio from 5 to 1 depending on the size of the entry candlestick structure.

Hourly EUR / USD chart

EUR / JPY

We expected the level at 130.17 to be able to act as support, as it previously acted as both support and resistance. Note how these “reversible” levels can work well. The H1 chart below shows how the price rejected this level with an uptrend engulfing candlestick during last Monday’s Asian session (generally a good time to trade currency pairs with a major component of Asian currencies such as the EUR / JPY crossover), marked by the up arrow in the price chart below. This trade has been very profitable due to the relatively strong price reversal seen last week, reaching a positive high reward / risk ratio more than 8 to 1 depending on the size of the entry candlestick structure.

EUR / JPY hourly chart

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



Source link

About The Author

Al Worden

Related Posts

Leave a Reply

Your email address will not be published.