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.
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