EURUSD is in balance (consolidation) now with a range levels 1.2218-1.2295. In Friday we saw a false break down of this balance. What to do now? There are 3 options in this case: p 1. Trade after consolidation will be break up. If the price breaks out level 1.2295 and holds above, we must wait for a correction to upper balance level and than buy. p 2. Trade after consolidation will be break down. If the price breaks out level 1.2218 and holds below, we must wait for a correction to lower balance level and than sell. But you must remember - if false break out/down happens and the price will return back into the balance you need to close position immediately.
p 3. Trade inside the balance from the lower balance level (it's not recommended to trade against a false break out/down). In this case you need to put stop below the false break down.