The EURUSD didn’t pull back to the level between 1.4410 and 1.4420 where I was looking to enter long. There was a fake inside bar breakout at 11:00 which was a good signal but I did not take that. Now the price is too far out for a good risk/reward ratio. Another missed chance…
The EURUSD fakey setup was valid. But contrary to my expectation in broke out to the upside. In fact this is how it was supposed to be given the valid uptrend. I am still uncomfortable to enter long at this level. I continue waiting for a pullback.
The 4h EURUSD chart shows a potential failed inside bar breakout pattern (aka ‘fakey’ by Nial Fuller), in fact a double signal. We are still too early in the current bar but I will closely watch how it plays out. There is quite some room for a corrective move lower as the pair seems overbought and far out from the ‘center of gravity’.
The key support at 0.8467 on the EURGBP daily chart is still intact but still at risk for a break lower. A second consecutive inside bar (today’s candle is not complete yet) signal a volatility squeeze. The 0.8467 support is underpinned by the 61.8% fibonacci retracement level at 0.8447. Either way a false inside bar breakout (dubbed as a ‘fakey’ by Nial Fuller) would be a strong signal to trade.
While the long-term trend is bearish, the current level is crucial to see if the trend will continue with target near the channel lows around 0.8000.
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