Trading Support And Resistance Eur/Usd, Usd/Cad

Date

7/23/2023 2:14:58 PM

(MENAFN- Daily Forex) Forex Brokers We Recommend in Your Region See full brokers list 1 brkr-logo

read full review get started

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:

Trading the two currencies that are trending the most strongly over the past 6 months.
Trading against very strong weekly counter-trend movements by currency pairs made during the previous week .
Carry Trade: buying currencies with high interest rates and selling currencies with low interest rates .

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:

Monthly Forecast July 2023

For the month of July, I forecasted that the USD/JPY currency pair would rise in value.

The performance to date of this forecast is as follows:

Weekly Forecast 23rd July 2023

Last week, I forecasted that the following currency crosses were likely to see rises in value: GBP/SEK, EUR/SEK, and EUR/NOK.

GBP/SEK declined by 0.39%.

EUR/SEK rose by 0.52%.

EUR/NOK declined by 0.65%.

This gave an overall loss of 0.52%.

I make no forecast this week, as there were no unusually strong counter-trend price movements last week in the Forex market.

Directional volatility in the Forex market declined very slightly last week with 48% of the most important currency pairs and crosses fluctuating over the week by more than 1%. Volatility will probably be lower over the coming week , as the weekly data schedule is much lighter.

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

Let us see how trading two of these key pairs last week off key support and resistance levels could have worked out:EUR/USD

I had expected the level at $1.1272 might act as resistance in the eur/usd currency pair last week , as it had acted previously as both support and resistance. Note how these “role reversal” levels can work well. The H1 price chart below shows how the price rejected this level right at the start of last Tuesday's London session (which can be a great time to enter Forex trades in major currency pairs such as this one) with a large doji candlestick , marked by the red down arrow in the price chart below signaling the timing of this bearish rejection. This trade was very profitable, giving a maximum reward-to-risk ratio of more than 4 to 1 based upon the size of the entry candlestick.

USD/CAD

I had expected the level at $1.3243 might act as resistance in the usd/cad currency pair last week , as it had acted previously as both support and resistance. Note how these“role reversal” levels can work well. The H1 price chart below shows how the price rejected this level right at the start of last Tuesday's New York session (which can be a great time to enter Forex trades in major currency pairs involving the US Dollar, such as this one) with a pin bar , marked by the red down arrow in the price chart below signaling the timing of this bearish rejection. This trade was very profitable, giving a maximum reward-to-risk ratio of approximately 3 to 1 based upon the size of the entry candlestick.

Ready to trade our forex weekly analysis ? We've shortlisted the best forex trading brokers in the industry for you.

MENAFN23072023000131011023ID1106651653

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.