EURAUD - False Breakout Head & Shoulders/2618 Retest

This was one of the more interesting pairs that we looked at today as it featured a lot. Starting on the higher timeframe it's important to realize that we have failed to break above our previous level of structure resistance. Therefore what seems like an obvious bullish flag formation may not be as appealing as it once seemed.

I'm looking at this as a potential false breakout due to the fact that after trying to rally above the highs of our channel, we've returned and passed it's midway mark. Now I've never tested this personally as I'm not much of a breakout trader but trading legend Linda Raschke warns to be aware of this.

if this is indeed a false breakout then a rally higher would give us 2618 opportunity competing at the same level as the left shoulder of a head and shoulders pattern. Giving us to reversal patterns at the same level.

Seems interesting to me.