News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • What is your forex trading style? Take the quiz and find out:
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here:
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • GBP/USD clears the May low (1.3801) as the Federal Reserve forecasts two rate hikes for 2023. Get your $GBP market update from @DavidJSong here:
Guest Commentary: False Breaks are Opportunities - Example with EUR/USD

Guest Commentary: False Breaks are Opportunities - Example with EUR/USD

Yohay Elam, ForexCrunch,

Buy high and sell much higher, or sell low and cover much lower. Such phrases are the bread and butter of breakout traders. However, this can end in a false break too often.

A false break is quite frustrating for traders that are stalking a breakout. They enter the trade in the direction of the breakout only to see the pair return back to the range, burning their money.It doesn't have to be that way. A false breakout can be an excellent trading opportunity, if you have the patience.

A false break is a small move that could be followed by bigger moves:

  • A second, convincing break: an initial dip lower or peek higher triggers the opposite reaction from those waiting to take a profit. However, if the forces behind the move are strong enough, a second move might not find the same resistance anymore.
  • A pullback deep into the range: After testing the extremes a bit too much, the pair can reverse and return towards the middle of the range.

How can you determine where the pair will move next? This depends a lot on what's going on in the markets. In the first case, the move is justified, but only ran into stops. In the second case, it was a false alarm.

False_Breaks_are_Opportunities__Example_with_EURUSD_body_1127-2.jpg, Guest Commentary: False Breaks are Opportunities - Example with EUR/USD

Example: EUR/USD broke above 1.30 on news that the Eurogroup reached an agreement on Greece. However, this was a half-baked decision with many details awaiting discussion. So, after an unconvincing move above 1.30, the pair dropped below this line and later continued down in a rather one-sided move down to 1.2924.

Where would the Stop Loss / Take Profit points be?

As a general rule of thumb, the 15% rule can be used. This results in a risk/reward ratio of 30:70, or 1:2.33.

In case of a second, real breakout, enter the trade at 15% out of the range after a false break, place the stop loss point 15% into the range and the take profit at 85% above the range.

For example, if the range was calculated by yourself as 1.28 to 1.3 (200 pips), this rule would yield an entry at 1.3030, SL at 1.2970 and TP at 1.3170.

In case of a false break that results in a return to range, enter the trade at 15% back into the range after a false break, the SL at 15% out of the range and the TP at 85% deep into the range.

In the example of 1.28 to 1.30, the entry would be at 1.2970, SL at 1.3030 and TP at 1.2830.

These are only examples and not trade recommendations.

What do you think? Do you trade false breaks?

Further reading: 5 Most Predictable Currency Pairs

By Yohay Elam, ForexCrunch

Would you like to see more third-party contributors on DailyFX? For questions and comments, please send them to

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.