EURUSD – Potential False Break Setup | Mar 13th
EURUSD – Potential False Break
After selling off from the 1.3900 area, and then being bought back up where we suggested buying the pair (1.3820-ish), the pair broke through the key 1.3900 level, reaching a high of 1.3965, only to get slammed down and close below 1.3900. This could present a false break setup around 1.3900 to sell the pair for a move back down to 1.3820/30, perhaps more.
Look for intra-day weakness heading into the level. If the pair forms a corrective pullback into the 1.3900 level, look to get short with tight stops above. Only a daily close now above 1.3965 helps bulls, but I doubt they will get excited being so close to 1.4000, so short term favors the bears now IMO.
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