For the month of September, I expect the EUR/USD currency pair and the GBP/USD currency pair to lose value, while the USD/JPY currency pair will increase in value.

This week I’ll start with my monthly and weekly Forex predictions of the currency pairs to watch. The first part of my forecast is based on my research of the last 20 years of Forex prices, which shows that the following methodologies have all produced profitable results:

Let’s take a look at the relevant data on currency price movements and interest rates to date, which we have compiled using a trade-weighted index of major world currencies:

Monthly forecast September 2022

For the month of August, I had forecast that the EUR/USD currency pair would lose value. The end result was nicely profitable and is shown below:

August 2022 Forex Forecast Performance

For the month of September, I expect the EUR/USD currency pair and the GBP/USD currency pair to lose value, while the USD/JPY currency pair will increase in value.

Weekly Forecast 4e September 2022

Last week, I did not make any weekly forecast, as there were no abnormally strong counter-trend price movements in the Forex market during the previous week. This week, I’m not making any predictions yet.

The Forex market has seen an increase in direction volatility Last weekwith 44% of all major currency pairs or crosses moving more than 1% in value. Directional volatility is likely to remain high or even increase over the coming week because several very important central bank press releases are expected.

Last week was dominated by the relative strength of the Euro and the US Dollar, and the relative weakness of the British Pound, Japanese Yen and Swiss Franc.

You can trade my predictions on a live or demo Forex brokerage account.

Main 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 some key support and resistance levels that can be seen on the most popular currency pairs this week.

Main support and resistance levels

Let’s see how trading two of these key pairs last week on key support and resistance levels might have worked:

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EUR/USD

We expected the level at $1.0070 to act as resistance in the EUR/USD currency pair Last week, as it previously acted as both support and resistance. Note how well these levels of “role reversal” can work. The H1 price chart below shows how price rejected this level during last Wednesday’s London/New York session overlap with a bearish engulfing candlestick, marked by the down arrow signaling the moment of the bearish rejection. This is generally a good time of day to enter trades in major Forex currency pairs. This trade was profitablerealizing lots of positives reward/risk ratio more than 4 to 1 so far depending on the size of the entry candlestick pattern.

EUR/USD hourly price table

AUD/USD

We expected the level at $0.6953 to act as resistance in the AUD/USD currency pair Last week, as it previously acted as both support and resistance. Note how well these levels of “role reversal” can work. The H1 price chart below shows how the price rejected this level in the London session last Tuesday with a downtrend doji candlestick, marked by the down arrow signaling the moment of the bearish rejection. This is generally a good time of day to enter trades in major Forex currency pairs. This trade has been extremely profitablerealizing a maximum positive reward/risk ratio greater than 10 to 1 so far depending on the size of the entry candlestick.

AUD/USD hourly price chart

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