Trading Support and Resistance - 10 October 2021

Get our trading strategies with our monthly & weekly forecast of currency pairs worth watching using support & resistance for the week of October 11, 2021. Advertisement This week we will begin with our monthly and weekly forecasts of the currency pairs worth watching. The first part of our forecast is based upon our 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 3 months. Assuming that trends are usually ready to reverse after 12 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 October 2021 For the month of October, we forecasted that the EUR/USD currency pair would fall in value. The result so far is shown below: Currency Pair Forecast Direction Interest Rate Differential Performance to Date EUR/USD Short ↓ +0.25% (0.25% - 0.00%) +0.04% Weekly Forecast 10th October 2021 Last week, we made no weekly forecast, as there were no unusually strong counter-trend movement last week. We again make no weekly forecast this week. The Forex market saw an increased level of volatility last week, with 37% of all the important currency pairs or crosses moving by more than 1% in value. Volatility is likely to remain at a similar level or to decrease over the coming week. Last week was dominated by relative strength in the Canadian dollar, and relative weakness in the Japanese yen. 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 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. Currency Pair Key Support / Resistance Levels AUD/USD Support: 0.7267, 0.7232, 0.7187, 0.7155 Resistance: 0.7375, 0.7393, 0.7410, 0.7426 EUR/USD Support: 1.1561, 1.1517, 1.1467, 1.1394 Resistance: 1.1588, 1.1609, 1.1668, 1.1688 GBP/USD Support: 1.3574, 1.3527, 1.3502, 1.3411 Resistance: 1.3687, 1.3746, 1.3765, 1.3805 USD/JPY Support: 111.55, 111.23, 111.06, 110.82 Resistance: 115.45, 116.29, 116.79, 119.04 AUD/JPY Support: 81.90, 81.41, 79.83, 79.69 Resistance: 82.17, 82.60, 83.02, 83.66 EUR/JPY Support: 129.68, 129.06, 128.63, 128.28 Resistance: 130.03, 130.42, 131.09, 132.05 USD/CAD Support: 1.2424, 1.2322, 1.2315, 1.2250 Resistance: 1.2487, 1.2563, 1.2605, 1.2688 USD/CHF Support: 0.9254, 0.9204, 0.9150, 0.9118 Resistance: 0.9331, 0.9370, 0.9387, 0.9438 That is all for this week. You can trade our forecasts in a real or demo Forex brokerage account to test the strategies and strengthen your self-confidence before investing real funds.

Trading Support and Resistance - 10 October 2021

Get our trading strategies with our monthly & weekly forecast of currency pairs worth watching using support & resistance for the week of October 11, 2021.

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This week we will begin with our monthly and weekly forecasts of the currency pairs worth watching. The first part of our forecast is based upon our 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 3 months.

  • Assuming that trends are usually ready to reverse after 12 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:

Currency Price Changes and Interest Rates

Monthly Forecast October 2021

For the month of October, we forecasted that the EUR/USD currency pair would fall in value. The result so far is shown below:

Currency Pair

Forecast Direction

Interest Rate Differential

Performance to Date

EUR/USD

Short ↓

+0.25% (0.25% - 0.00%)

+0.04%

Weekly Forecast 10th October 2021

Last week, we made no weekly forecast, as there were no unusually strong counter-trend movement last week. We again make no weekly forecast this week.

The Forex market saw an increased level of volatility last week, with 37% of all the important currency pairs or crosses moving by more than 1% in value. Volatility is likely to remain at a similar level or to decrease over the coming week.

Last week was dominated by relative strength in the Canadian dollar, and relative weakness in the Japanese yen.

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 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.

Currency Pair

Key Support / Resistance Levels

AUD/USD

Support: 0.7267, 0.7232, 0.7187, 0.7155

Resistance: 0.7375, 0.7393, 0.7410, 0.7426

EUR/USD

Support: 1.1561, 1.1517, 1.1467, 1.1394

Resistance: 1.1588, 1.1609, 1.1668, 1.1688

GBP/USD

Support: 1.3574, 1.3527, 1.3502, 1.3411

Resistance: 1.3687, 1.3746, 1.3765, 1.3805

USD/JPY

Support: 111.55, 111.23, 111.06, 110.82

Resistance: 115.45, 116.29, 116.79, 119.04

AUD/JPY

Support: 81.90, 81.41, 79.83, 79.69

Resistance: 82.17, 82.60, 83.02, 83.66

EUR/JPY

Support: 129.68, 129.06, 128.63, 128.28

Resistance: 130.03, 130.42, 131.09, 132.05

USD/CAD

Support: 1.2424, 1.2322, 1.2315, 1.2250

Resistance: 1.2487, 1.2563, 1.2605, 1.2688

USD/CHF

Support: 0.9254, 0.9204, 0.9150, 0.9118

Resistance: 0.9331, 0.9370, 0.9387, 0.9438

That is all for this week. You can trade our forecasts in a real or demo Forex brokerage account to test the strategies and strengthen your self-confidence before investing real funds.