A false breakout

Today some of us believed the eur/usd pair would go higher and put their money on it. But of course, this was not true as we could see. It was a false breakout. Among the binary traders I am sure there are a lot of Forex traders and you know what a false breakout is. If you are also familiar with the RSI indicator, you could see it already signaled overbought conditions at the time of the “breakout”. Not a good place to buy if you would ask me.

false breakout A false breakout

Euro could go a lot lower, even testing the 1.2000 level, but that is just a supposition, not a trade advice.

Today no important data was released other than trade balance for China which was much better than forecast: 31.7B. Expected was 22.6B and previous was 18.7B.Also better than expected were the Manufacturing Production numbers for UK: 1.2%, previous -0.8% and forecast 0.1%

Probably tomorrow will be a quiet day as well because no important news is due to be released. Keep an eye on Trade Balance for the USD. Previous is -50.1B and expected is -48.5B. At 7.00 pm GMT the FOMC meeting minutes will be released and some volatility could be seen then.