Trading on the market has been pretty tough recently. Prices are not moving in trends, they often change direction, and we’re seeing a lot of false breakouts. However, false breakouts can also provide great trading opportunities and that is what we will focus on in this analysis.
Our first instrument is the EURUSD pair, where a false breakout happened quite a while ago; at the beginning of March. After this, the price went significantly higher and is currently aiming for the mid-term downwards trend line. This could be a good occasion for the bulls to capture some profits, which may trigger a bearish correction.
Next up is AUDJPY, where we have a false breakout of the horizontal support and from the head and shoulders pattern. That clears the a way for a new upswing. This view is additionally strengthened here by the wedge pattern. All we need to see for a proper buy signal is the pair closing above the upper line of the wedge.
AUDUSD is next, where the false breakout is still fresh. The pair tried to escape from the flag to the downside but failed. In addition to that, sellers could not break the 0.707 support. This is a positive sign but a legitimate buy signal will be triggered only when the black downwards trend line is broken.