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Trading Opportunities From Three False Breakouts

ByAlpari Research & Analysis
AuthorTomasz Wisniewski
Published 03/20/2019, 04:33 AM
Updated 05/14/2017, 06:45 AM

Trading on the market recently is pretty tough. The price is not moving in trends, often changes direction and creates many false breakouts. 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 EUR/USD, 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 could be a good occasion for the buyers to capture some profits, which may trigger a bearish correction. Next one is the AUD/JPY, where we have a false breakout of the horizontal support and from the head and shoulders pattern. That opens a new upswing. This view is additionally strengthened 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 AUD/USD, 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.

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