I made no forecast for the month of November, as I assumed markets had turn into too unsettled to look past the following few days.
This week I’ll start with my month-to-month and weekly Foreign exchange forecast of the foreign money pairs value watching. The primary a part of my forecast relies upon my analysis of the previous 20 years of Foreign exchange costs, which present that the next methodologies have all produced worthwhile outcomes:
Allow us to have a look at the related knowledge of foreign money value modifications and rates of interest to this point, which we compiled utilizing a trade-weighted index of the main international currencies:
Month-to-month Forecast November 2022
I made no forecast for the month of November, as I assumed markets had turn into too unsettled to look past the following few days. I feel this has confirmed to be a superb name as route in Forex has turn into unsure over current days.
Weekly Forecast 20th November 2022
Final week, I made no weekly forecast. This week, I once more make no weekly forecast, as there have been no unusually sturdy counter-trend value actions out there final week.
Forex noticed a robust lower in directional volatility final week, with solely 41% of a very powerful foreign money pairs and crosses transferring by greater than 1% in worth. Directional volatility is more likely to stay comparatively low and even fall additional over the approaching week.
Final week was dominated by relative power within the New Zealand Greenback, and relative weak spot within the Swiss Franc.
You possibly can commerce my forecasts in an actual or demo Foreign exchange brokerage account.
Key Assist/Resistance Ranges for Standard Pairs
I train that trades needs to be entered and exited at or very near key assist and resistance ranges. There are particular key assist and resistance ranges that may be watched on the extra well-liked foreign money pairs this week.
Allow us to see how buying and selling two of those key pairs final week off key assist and resistance ranges may have labored out:
EUR/USD
I had anticipated the extent at $1.0281 would possibly act as assist in the EUR/USD foreign money pair final week, because it had acted beforehand as each assist and resistance. Be aware how these “position reversal” ranges can work properly. The H1 value chart beneath reveals how the worth rejected this degree proper in the beginning of final Monday’s New York session (which may typically be a good time to enter Foreign exchange trades) with a bullish exterior candlestick, marked by the up arrow signaling the timing of this bullish rejection. This commerce has been worthwhile, attaining a most optimistic reward to danger ratio of greater than 2 to 1 up to now primarily based upon the dimensions of the entry candlestick.
GBP/USD
I had anticipated the extent at $1.1721 would possibly act as assist in the GBP/USD foreign money pair final week, because it had acted beforehand as each assist and resistance. Be aware how these “position reversal” ranges can work properly. The H1 value chart beneath reveals how the worth rejected this degree proper on the shut of final Monday’s London session (which may typically be a good time to enter Foreign exchange trades within the British Pound) with a bullish doji candlestick, marked by the up arrow signaling the timing of this bullish rejection. This commerce has been worthwhile, attaining a most optimistic reward to danger ratio of greater than 4 to 1 up to now primarily based upon the dimensions of the entry candlestick construction.
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