Trading Support and Resistance – 08 April 2018

Trading Support and Resistance – 08 April 2018

This week we’ll 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 16 years of Forex prices, which show that the following methodologies have all produced profitable results:

Let’s take a 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:

Chart 1

Monthly Forecast April 2018

This month, we forecasted that the best trades would be long EUR/USD and long GBP/USD. The performance so far is as follows:

Currency Pair

Forecast Direction

Interest Rate Differential

Performance to Date


Long ↑

-1.75% (0.00% – 1.75%)



Long ↑

-1.25% (0.50% – 1.75%)



Weekly Forecast 8th April 2018

Last week, we made no weekly forecast, as there were no strong counter-trend movements that week.

This week, we make no weekly forecast, as there were again no strong counter-trend movements.

This week has been dominated by relative strength in the Canadian Dollar, and relative weakness in the Japanese Yen.

Volatility was much about the same as it was last week, with only approximately 22% of the major or minor currency pairs changing in value by more than 1%. Volatility is likely to be similar next week.

You can trade our forecasts in a real or demo Forex brokerage account.

Previous Monthly Forecasts

You can view 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 close to key support and resistance levels. There are certain key support and resistance levels that should be watched on the more popular currency pairs this week, which might result in either reversals or breakouts:

Currency Pair

Key Support / Resistance Levels


Support: 0.7640, 0.7629, 0.7598, 0.7577

Resistance: 0.7696, 0.7775, 0.7804, 0.7851


Support: 1.2260, 1.2005, 1.1885, 1.1863

Resistance: 1.2361, 1.2384, 1.2436, 1.2500


Support: 1.4025, 1.3983, 1.3879, 1.3822

Resistance: 1.4097, 1.4193, 1.4330, 1.4435


Support: 106.68, 106.44, 106.13, 105.66

Resistance: 108.05, 109.76, 110.52, 111.20


Support: 81.26, 80.31, 79.84, 79.21

Resistance: 82.70, 83.26, 83.60, 84.85


Support: 130.88, 130.61, 130.23, 129.12

Resistance: 131.87, 134.16, 134.88, 136.00


Support: 1.2732, 1.2669, 1.2605, 1.2530

Resistance: 1.2840, 1.2946, 1.2971, 1.3053


Support: 0.9557, 0.9521, 0.9509, 0.9462

Resistance: 0.9665, 0.9732, 0.9816, 0.9861

Let’s see how trading one of these key pairs last week off key support and resistance levels could have worked out:


We had expected the level at 1.3983 might act as support, as it has acted previously as both support and resistance. Note how these “flipping” levels can work well. The H1 chart below shows the how the price hit the support level at 1.3983 twice, and it held both times. Both are illustrated by the blue up arrow within the price chart shown below. The first time was after the London close on Thursday, when a bullish engulfing candlestick could have signaled an entry. The following day, simultaneous with the London open which is typically a good time to enter trades in this pair, the level was again rejected by a bullish pin candlestick which was also an outside candlestick. This trade has been successful, achieving a maximum positive reward to risk ratio so far of 6 to 1.


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.

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