Get our trading strategies with our monthly and weekly forecasts of currency pairs to watch using support and resistance for the week of August 23, 2021.
This week we’ll start with our monthly and weekly forecasts of currency pairs to watch. 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:
Trade the two trending currencies over the past 3 months.
Assuming that trends are usually ready to reverse after 12 months.
Trade versus very strong weekly counter-trend movements by currency pairs made during the previous one the week.
Carry Trade: buying currencies with high interest rates and selling currencies with low interest rates.
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:
Monthly Forecast August 2021
For the month of August, we have not made any predictions as there are no clear trends in the Forex market showing very strong momentum.
Weekly forecasts 22sd August 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 experienced high volatility in the past week, with 59% of all major currency pairs or crosses moving more than 1% in value. Vvolatility is expected to remain high over the coming week, but may well be a bit lower.
The past week was dominated by the relative strength of the US dollar and the relative weakness of the Canadian dollar. There is a strong bullish trend in the US dollar which makes the current market environment attractive for traders.
You can trade our forecasts in a real or demo Forex brokerage account.
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. Some key support and resistance levels can be seen on the most popular currency pairs this week.
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.