Get our trading strategies with our monthly and weekly predictions of currency pairs to watch using support and resistance for the week of April 25, 2022.

This week I will start with my monthly and weekly predictions of the currency pairs to watch. The first part of my forecast is based on my research of the last 20 years on Forex prices, which shows that the following methodologies have all produced profitable results:

Let’s take a look at the relevant data on currency price movements and interest rates to date, which we have compiled using a trade-weighted index of major world currencies:

Monthly forecast April 2022

For the month of April, I forecast that the US Dollar Index (USDX) will increase in value. It is up 1.98% so far this month.

24 Week Forecast^and April 2022

Last week, I did not make any weekly forecast as there were no abnormally strong countertrend price movements in the Forex market during the previous week. I’m not making any predictions this week yet.

The Forex market has seen its level of direction volatility increased further over the past week, with 44% of all major currency pairs or crosses moving more than 1% in value. Directional vVolatility should remain the same over the coming week.

Last week was dominated by the relative strength of the Euro and the US Dollar, and the relative weakness of the British Pound, Japanese Yen and Swiss Franc.

You can trade my predictions on a live or demo Forex brokerage account.

Main support/resistance levels for popular pairs

I teach that trades should be entered and exited at or very close to the key support and resistance levels. There are some key support and resistance levels that can be seen on the most popular currency pairs this week.

Let’s see how the trading reversals of two of last week’s key levels could have worked:

GBP/USD

I expected the level 1.3083 could work as a resistor, as it acted as both support and resistance alternately over the previous week. Notice how such reversal levels can be very reliable reversal points. I was also happy to go short at this level due to the long term downtrend of this currency pair. The H1 graph below shows how price rejected this level with a pin bar at the London session last Thursday, which is often the perfect time to enter trades on major currency pairs. The entry point is marked by the down arrow in the price chart below. This trade was very profitable, reach a positive maximum risk-reward ratio so far more than 7 to 1 depending on the size of the entry candlestick.

EUR/JPY

I expected the level 136.47 could serve as support, as it acted as both support and resistance earlier. Notice how such reversal levels can be very reliable reversal points. The H1 graph below shows how price rejected this level with a pin bar from the start of last Monday’s Tokyo session, which is often the perfect time to trade in currency pairs involving the Japanese Yen when it is trending strongly, as was the case last week. The entry point is marked by the up arrow in the price chart below. This trade was very profitable, achieve a maximum positive risk-reward ratio so far greater than 9 to 1 depending on the size of the entry candlestick.

It’s all for this week. You can trade my predictions on a live or demo Forex brokerage account to test the strategies and build your confidence before investing real funds.