EURUSD – Long Tailed Pin Bar + False Break Post ECB | Jun 5
EURUSD – Forms Long Tailed Pin Bar + False Break
As we mentioned in the members commentary yesterday, there was a good chance the ECB meeting and Draghi speak would spark a tremendous amount of volatility. Lo and behold, we have indices jumping, gold bumping, and the USD on the end of a thumping.
While the Euro initially moved lower, the pair bounced heavy forming a long tailed pin bar + false break. This pin bar is actually also doubling as an engulfing bar as well, but the effect is the same with the close above the consolidation’s low, on the highs and the long tailed bar rejection.
Our Trade Idea: I am open to the idea of getting long on this false break + pin bar setup, although I’d prefer a pullback. Conservative traders can wait for a pullback into the 1.3645/15 area, while aggressive traders could buy equal to the daily close, about 5-10 pips lower.
Stops would be suggested below the recent consolidation, while upside targets would be 1.3730 and 1.3830.
Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.
Want to Learn Price Action Strategies for Trading Forex?
Sign Up for our Monthly Newsletter and Get our FREE E-Book