EURUSD – A False Break or Not?

22 May - EURUSD Daily Forex Chart

 

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Hi All,

Just a quick update on the EURUSD. Since my commentary on the 11th (see article), the Inside False Break pattern has materialised but the pattern is only an early sign and not a confirmation of a reversal.

Mistakes are not worth it

Looking at price action above, there is a potential that price is making a reversal. The Long bearish trend bars since the top of the box (purple box) are beautiful clues that the sellers want to take control. As I write this post, price is testing the bottom of the box range.

While my bias is bearish, it’s all too early to jump into conclusion. In fact, you can see that the short term buyers and sellers are fighting to show leadership and price has been fairly choppy in the last 5-6 days. As much as I’m here to make money, going in now will be costly since the risk is still high.

With that, I will be waiting for more confirmation.

 

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2 Comments

  • rcreddyvanga

    Reply Reply May 22, 2014

    The candle formed at key level. but this is not strong enough to take a buy call.

    • Alwin Ng

      Alwin Ng

      Reply Reply May 22, 2014

      Hey Ramchandran,
      Thanks for the comment. Exactly, no clarity just yet, I need more PA for confirmation.

      Alwin

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