Well, false breakouts can be great occasions too and actually that is, what we will focus on in this analysis.
The first instrument is the EURUSD, where the false breakout happened quite some time ago, at the beginning of March. After this, the price went significantly higher and is currently aiming the mid-term down trendline. That can be a good occasion for the buyers to capture some profits, which may trigger us a bearish correction.
Next one is the AUDJPY, where we have a false breakout of the horizontal support and from the head and shoulders pattern. That opens us a way for a new upswing. This view is additionally strengthened here by the wedge pattern. All we need to see for a proper buy signal is the price closing above the upper line of the wedge.
Next one is the AUDUSD, where the false breakout is still fresh. The price tried to escape from the flag to the downside but failed. In addition to that, sellers could not break the 0.707 support. That is a positive sign but the legitimate buy signal will be triggered, when the price will break the black down trendline.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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