11 Free Forex Trading Signals For April 3 – 7 2017
The EURO collapsed from resistance via a failure test of December highs (my favorite setup) which negated all of our EURO cross signals. This is not a problem of course if you read the price action because the weakness was evident.
A lesson this week about diagonal price patterns – not as productive as horizontal patterns or horizontal support and resistance. I take a page out of a long time price pattern trader (an extremely successful one) who, after decades of trading all patterns, started to ignore them and just focus on the horizontal ones.
Regardless of the EURO issues, reading price action is an important skill to see who is winning the battle. All trades that paid tipped intentions through price action which produced a conservative 450 pips this week.
AUDCAD – As stated in signal, look for this FX pair to tip it’s hand to another leg down. Bull trap started on Mar 28 and took longs out on Mar 29 with a perfect reversal. Traders should be up about 60 pips.
EURNZD – Signal started with “read price action”. Upside break of pattern very weak, price rejected at horizontal resistance (do you see a pattern here!!!!) and collapsed. Shorting lows of Mar 28 has you sitting on over 150 pips.
NZDCAD – Signal wanted downside. Downside break came to roughly 70 pips and rejected at support.
EURAUD – Signal called for weakness and the week started with a break to the upside but price action was obviously weak as indicated by shadows. Price rejected at resistance at highs where trend line stated. Price slammed back down and traders who read the weakness as indicated, should be up at least 200 pips if you trade this pair. This is the exact reason I prefer horizontal patterns and support/resistance plays.
EURGBP – Called for trend line break to upside due to support and daily chart price action. Trend line broke upside and then price collapsed. Perfect example of a trend line break failure and how nothing is 100% perfect.
EURJPY – Signal said if Euro finds legs, this would be a nice upside trend line break off support. No legs. No break. Euro collapsed after a beautiful upthrust at resistance from December 2016 (I call it a failure test).
GBPJPY – Unconvincing upside break of long term consolidation. Nothing to see here yet.
NZDJPY – Just grinding lower. Pullback did not occur.
For this week, the state of the charts on many Forex pairs are quite “messy”. Structures are in the way that can cause some pain if in a trade. I prefer nice clean charts with room to run.