FX Price Action – EURUSD Forms Inside Bar After False Break | Apr. 18th

After consolidating in a range for 4 days, The Euro broke higher, clearing the key resistance at 1.3121 on Tuesday. However, the pair did an immediate about face, and broke back into the range, reversing the entire days losses. Today, the pair formed an inverted pin bar + inside bar combo just above the support at 1.3021 and daily 20ema. By itself, the inverted pin bar is a failed attempt to rally, so now we are back in the range between 1.3121 and 1.3021.

Bears can look for shorts on corrective rallies into 1.3120, while bulls can look for weak pullbacks towards 1.3021. Generally a false break after a range, either means further consolidation, or break down. So watch for clues at the range borders, but a failure to break above 1.3121 will likely see more bears come in and challenge the bulls just above the big figure below.

inside bar + inverted pin bar price action eurusd 2ndskiesforex.com

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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Flashmark

    Don’t you think today market news important to these breakout?

    • Hello Lakmal,

      We trade through most news annoucnements as the price action will communicate where the most likely move will occur.

      Kind Regards,
      Chris Capre

  • Gabe

    Thanks for the article Chris.

    I find false breaks more interesting than breaks that break and run without looking back, at least for the short term.

    I was curious about testing. Is there a particular software or resource that you recommend for back testing?