August 3, 2022
  • August 3, 2022

Support and resistance to trading

By on May 16, 2021 0

Get our trading strategies with our monthly and weekly forecasts of currency pairs to watch using support and resistance for the week of May 17, 2021.


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 over the past 18 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 changes in currency prices 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 May 2021

For the month of May, we had forecast that the USD / CAD currency pair would drop in value and the CAD / JPY currency crossover would rise in value. So far, the performance has been positive:

Monthly Forecast May 2021

Weekly forecast 16e May 2021

Last week we didn’t do any weekly predictions as there weren’t any unusually strong countertrend price movements in the Forex market. This week we are not making any predictions yet.

The Forex market showed a reduced level of volatility last week, with 19% of major currency pairs and crosses again moving over 1% in value. Volatility is expected to remain relatively low over the coming week.

The past week has been dominated by the relative strength of the British pound 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 trading reversals from one of last week’s key levels would have played out:


We expected the 0.7696 level to serve as support as it previously acted as both support and resistance. Note how these ‘turnaround’ levels can work well. The H1 chart below shows how the price rejected this level with a pin bar right at the opening of last Thursday’s London session, marked by the up arrow in the price chart below, which is usually a good time to trade major pairs involving the US dollar like this- here on the Forex market. This trade was well profitable, reaching an excellent positive maximum reward / risk ratio so far over 4 to 1 depending on the size of the entry candlestick.

Hourly AUD / USD chart

It’s all for this week. You can exchange our forecasts by a real or demo Forex brokerage account to test strategies and build your self-confidence before investing real money.