EURUSD made a nice breakout lower 2 weeks ago and we thought that it would move lower and continue its downtrend. However, since last week it got bought very aggressively to the upside as you can see.
I tend to belive that it was a so-called "fake breakout" as the move higher is very strong and can continue higher. The fakeout pattern is a common one appearing in the markets.
This is how it works: If the market decides to breakout either way from a range and after the initial breakout if gets bought or sold against the main breakout trend there is a big possibility that the market will breakout to the other side of the range (you can see the picture on the bottom left on what I mean)
And I think this can be a possibility with the EURUSD. It can initially breakout higher to the other side of the range above 1.18546 highs. Obviously, short-term pullbacks will occur. But there is a chance of this pattern to take place. Lets see.
Cheers and trade with care
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view present is not a trading recommendation just personal view.