The EUR/USD reversed right after this scenario was discussed yesterday. Additional confirmation of the bull-trap/false breakout of the bull flag pattern on the daily chart would come on a solid break below the wedge and the 1.12ish support level. Also note that we now have confirmation on the negative divergence that I was looking for, which increases the odds that EUR/USD will soon break down below this 60-minute bearish rising wedge although support is support until broken. As such, we need to see those levels give way in order to confirm the next sell signal in the EUR/USD (which would translate into a rally in the US Dollar).

EUR-USD 60 minute Feb 10th

EUR-USD 60 minute Feb 10th

 

Should the 60-minute bearish rising wedge in the EUR/USD pattern go on to breakdown with a move down towards my pullback target zone, the fake-out (false breakout) scenario discussed in yesterday's video would be in play. Failed breakouts are typically followed by a sharp reversal in the opposite direction, which in this case, would translate to a sharp rally in the US Dollar and most likely a correction in gold & GDX.

EUR-USD daily Feb 10th

EUR-USD daily Feb 10th