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EUR/AUD: Drop After A False Breakout

Published 06/07/2017, 06:15 AM
Updated 07/09/2023, 06:31 AM
EUR/AUD
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EUR/AUD H4 Chart


EUR/AUD: Last week I wrote an article saying I am looking for a short opportunity just before the rate broke to the upside. It seems though it was a false breakout as it has dropped quite sharply breaking the two-month-long uptrend and is now testing the old resistance/new support area at 1.4885.

I will be looking for a move higher now to the former broken rising trendline around 1.5050 for the rate to form a head and shoulders pattern, however, I will also consider entering smaller short position on the strong break of the current support.


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