Hi Traders,
As we start settling into the new month of August, I have spotted a False Break-out Setup on EUR/USD. This is a potentially Powerfull setup should the trade play out. Looking at the 4- hour timeframe, It is evident that price has met with strong resistance at 102.600. Price then proceeds to Push past this point but then very quick and with momentum, It breaks back into the zone.
Now that Price is trading back below resistance, I believe we have a high probability of the price pushing down to 1.0100 with ease. The reason behind my bias is based on the false break out, which, break out traders are probably still Long in. I would like to see price give a pull back into 102.600 I will be entering a short position.
My Target is at 1.108 which is a strong support level. Price may continue pushing much lower but I will have to see how it reacts. Looking on the flip side, even though I have a lot of confidence in this trade, we still have to take into account the possibility that this trade could fail.
My stop loss is placed above the current 4 – hour Candle which is priced at 102.870. At that point I will no longer be interested in this position.
For now, I am waiting for a pullback and will not enter a minute sooner.
Renaldo Philander
As we start settling into the new month of August, I have spotted a False Break-out Setup on EUR/USD. This is a potentially Powerfull setup should the trade play out. Looking at the 4- hour timeframe, It is evident that price has met with strong resistance at 102.600. Price then proceeds to Push past this point but then very quick and with momentum, It breaks back into the zone.
Now that Price is trading back below resistance, I believe we have a high probability of the price pushing down to 1.0100 with ease. The reason behind my bias is based on the false break out, which, break out traders are probably still Long in. I would like to see price give a pull back into 102.600 I will be entering a short position.
My Target is at 1.108 which is a strong support level. Price may continue pushing much lower but I will have to see how it reacts. Looking on the flip side, even though I have a lot of confidence in this trade, we still have to take into account the possibility that this trade could fail.
My stop loss is placed above the current 4 – hour Candle which is priced at 102.870. At that point I will no longer be interested in this position.
For now, I am waiting for a pullback and will not enter a minute sooner.
Renaldo Philander