This week I will begin with my monthly and weekly forecasts 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:
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:
Currency Price Changes and Interest Rates
Monthly Forecast February 2022
For the month of February, I forecasted that the EUR/USD currency pair will fall in value. The performance to date of this forecast is as follows:
Weekly Forecast 27th February 2022
In my previous forecast last week, I made no weekly forecast. This week I forecast that the GBP/NZD currency cross is likely to rise in value, as it fell so strongly against its long-term trend over the past week.
The Forex market saw its level of directional volatility increase last week, with 37% of all the important currency pairs or crosses moving by more than 1% in value. Directional volatility is likely to increase over this coming week, as markets will become unstable if events in Ukraine take a more dramatic turn over the coming days.
Last week was dominated by relative strength in the Australian Dollar, and relative weakness in the British Pound.
You can trade our 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 watched on the more popular currency pairs this week.
Key Support and Resistance Levels
That is all for this week. You can trade my forecasts in a real or demo Forex brokerage account to test the strategies and strengthen your self-confidence before investing real funds.
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