This last week was a very profitable one resulting in +160 pips from the Eur/Usd trades. To me it seems that major forex pairs as well as many global indices are ready for a decline of days if not weeks.

Let’s take a look at some charts and I’ll explain why.
(Click for a larger view)

The chart above is the weekly Eur/Usd chart. On it I’ve put a Fibonacci retracement From the 2000 low up to the 2006 high. This is very interesting as you can see the price action has been hovering around the 38.2% retracement over the last weeks and months.

I think it’s ready to break down through this level, first do a retest of the recent 1.2600 lows and then head to the 50% retracement level around 1.2143.

Looking at other indicators, stochastics are pointing down and RSI is under 50 which are bearish signals.

Price action is also below 21EMA, 50EMA and 100EMA Which is also bearish.

The daily chart above also gives very bearish signals:

The price action is below 21EMA, 50EMA and 100EMA.

MACD histogram has just crossed below the 0 line.

RSI is below 50.

Stochastics pointing down.

Eur/Usd Forex Trading Strategy

Based on my analysis I think that this pair will drop to 1.2600 and then further to 1.2150, with very limited upside.

I’m currently still holding a short from 1.3150 which I’ll keep (stop above 1.3185), so there is almost no risk and huge gains.

If you don’t yet have a position, I’d short 1.3120 up to 1.3150 with a stop above 1.3185.

I expect Eur/Usd to drop this week, targeting the 1.3000 level.

Let’s have a look at a daily chart below:
(Click for a larger view)

• The RSI is hovering just above the 50 level.
• Slow stochastics are in overbought territory.
• Price action has just pricked through the 100MAE a few times but so far hasn’t managed to break through to the upside.
• There is a descending trendline posing as resistance.
• There is an ascending trendline that was broken to the downside early April and has since acted as resistance.

Trading Strategy

I’d short Eur/Usd here at market (1.3210) with a stop above last week’s high of 1.3270.

Target is 1.3000, but of course take profit when you see fit.

Let’s take an in-depth look at Eur/Usd and start off with the monthly chart below:
(click for a larger view)

I put a Fibonacci retracement on the entire move from 0.8221 to 1.6000 and it seems that the last few months the price action is hovering around the 38% retracement level of that entire move.

The monthly MACD histogram is negative as well as the RSI is below the 50 level.

Price action is below the 21 and 50 EMA but hovering on the 100MAE.

Based on all these indicators and signals I’d say that Eur/Usd should still head significantly lower in the coming weeks and months, but should this monthly candlestick close around 1.3300 or higher then there is a good chance that next month will first show further upside. Keep that in mind.

Let’s take a look at the weekly chart:
(click for a larger view)

The weekly candle was a big up candle that was halted by the 21 MAE.

Price action is under the 21, 50 and 100 MAE.

MACD histogram is above 0.

RSI is just below the 50 level.

It’s very difficult to make a call based on this chart. I think that either the coming week will be straight back down again and not break through the 21MAE or it will in fact shoot straight up through the 21 MAE and head much higher. That’s something you’d have to watch very carefully if you were planning to trade this pair next week. I’m not recommending anything based on these charts but I might make a trade during the week if I see a good setup.

Let’s take a look at the daily chart:
(click for a larger view)

On the daily chart above, the MACD histogram is about to turn positive.

Slow stochastics are pointing up and the RSI is just above 50.

Price action is above the 21 and 50 EMA but is halted by the 100 EMA.

I’ve drawn in a triangle wedge in black, but also a trendline in blue.

My first expectation would be that Eur/Usd does not move higher than 1.3240 and comes back down to 1.3100 or lower. But should it break that 1.3240 then there is potential for up to as high as 1.3400 next week.

It’s a very unclear situation at the moment which is why I’d recommend to be open-minded about the direction of Eur/Usd next week and wait for a more clear trade setup to develop.

Making profits with your forex trading account is all about making enough pips. The more pips you make, the more profit you make.

It’s very risky to follow a strategy that requires you to trade with very large positions to grab a couple of pips with every trade. Reason for this is that a single spike or news announcement can put you down dozens of pips and even if you trade with a stop, one mistake can really make a big dent in your account.

I like to do my own analysis and determine my own trades, but I’m aware that there are traders out there who are much better than me. So it would be foolish of me not to try to learn from others who’ve been trading for a living for many years.

I’ve decided to test out two forex trading services that claim to give your forex trading profits a boost. They are:

FAP Turbo

FAP Turbo is a automated forex trading robot, and the best one on the market at that.

It claims to make you profits on total autopilot and in some examples it’s even doubled real money accounts in 30 days.

Now I know that most things that claim to make money on autopilot are total scams, but FAP Turbo has been around for a few years now and has over 50,000 members who bought the software. If something is a scam it wouldn’t have so many members and it wouldn’t be around for years. So there must be something to it.

How it works is that it’s like a script or program that attaches to your Metatrader 4 platform. You can adjust the settings (trade size, stop loss etc) and then you just leave your trading platform open and connected and FAP Turbo will make trades for you on autopilot.

It costs $150 once-off but if it really does what it says it will, then it’s totally worth the price. I will do a detailed review of my experience with the product after 30 days so you can decide whether it’s worth purchasing.

I’ve let it run for a few hours and it did two trades for me on autopilot, resulting in $0.25 profit. This does not sound like a lot but it’s because I set the lot size at 0.01 which means that profits are $0.10 per pip. Increase the lot size to 1 and it would have been $25 profit. I’ll keep you posted on how FAP Turbo performs but if you don’t want to wait and want to try it out for yourself, you can download FAP Turbo here.

Greg’s Success Signals

Greg is also know as the Polish forex guy or the traveling trader. In short, he’s been trading forex for a living for the last few years and using part of his profits to travel the world and lives how he wants.

Greg has a success signal service that allows your Metatrader 4 platform to sync with his and thus you can automatically copy all his trades in your own account. You are able to adjust the trade-sizes so that you can set your own risk that you’re comfortable with.

Now I’m not normally one to just blindly allow others to trade for me, no matter how convincing their sales pages or claims to success are. I did some research about Greg’s Success Signals and I’ve found some positive reviews, with some users documenting their success with this service. Some people even claim to have made over 1000 pips profit in just one month using this service.

I’ve decided to try it out. The cost is minimal at $47 per month, because even if the service were to make 500 pips monthly profit, that would be $500 profit trading at $1 per pip (0.1 lot size).

Just as with FAP Turbo, I plan on doing a detailed review of my experience with Greg’s Success Signals after a few weeks of using the service so that you can indeed see whether it’s worth subscribing to or not.

Once again, if you cannot wait for my detailed review and want to test Greg’s Success Signals for yourself, you can get access to it here.

These are just two of the various reputable signal services I’ve heard about and I cannot wait to test them out on my real money trading account in the coming weeks. Be sure to subscribe to Forexhabits.com via email to get updated on my latest posts (it’s totally free).