Important lesson about the false breakouts. EURUSD, DAX and Gold

Tomasz Wiśniewski

What a week! First, we started with the gap on almost all instruments and then we got a very volatile reversal. Our first instrument is the EURUSD, where the initial gap was relatively small but what happened next is more important. Yesterday, the price broke the horizontal resistance created by the last week’s tops along with the upper line of the symmetric triangle. As we can see now, that is a false breakout pattern, which brings us a proper sell signal. Next target is on the lower line of the triangle.

DAX also has a false breakout pattern. Here, gap allowed to break the neckline of the iH&S pattern or the triple bottom formation, if You will. For the buy signal, the price needed to stay above that black support. They did not manage to do that, so that is a false breakout pattern and should result with a further weakness.

About the false breakouts… we need to mention the Gold now, where the price was trying to break the 38,2% Fibo again. For some time, we were even above but then, the price went back under that resistance. I guess you already know how important that level is. As long as we stay below, the sell signal is on.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.