![\"EURUSD](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/01\/EC-12.png\" "\\"\\"")
<\/a><\/p>\nThe 240 minute EURUSD Forex chart had a bear breakout below a wedge bull channel. Therefore, two legs down is a likely goal. In addition, the bear breakout was strong enough so that a 2nd leg down is likely. Yet, unless the bears break below the most recent major higher low, the bulls still correctly see this as a pullback in a now flatter broad bull channel.<\/p>\n
While the bears got a reasonably strong break below the bull trend line of a wedge top on the 240 minute chart, the selloff is still above the bottom of the most recent higher low. The chart is therefore still in a bull trend. Yet, the selloff was strong enough to make at least a small 2nd leg likely. Hence, the bears will probably have one more chance at converting the bull channel into a trading range. <\/p>\n
The bear breakout only lasted a couple of bars. It therefore was not especially strong. Hence, if the bears get their 2nd leg down, a trading range is more likely than a bear trend. Furthermore, a wedge rally usually evolves into a big trading range.<\/p>\n
The bulls want the broad bull channel to continue up above the top of the December 8 major lower high around 1.0873. While they still might succeed, the rally on the daily chart does not look strong enough to get there without a bigger pullback 1st.<\/p>\n
Overnight EURUSD Forex trading<\/h3>\n
The EURUSD Forex market traded sideways in a 40 pip range overnight. This is a lack of follow-through selling after yesterday’s bear breakout. Hence, it reduces the chances that the selloff is the start of a bear trend. <\/p>\n
Furthermore, after last week’s strong 3 day rally, it creates confusion. Therefore, the chart will probably go sideways for another day or two before deciding whether the broad bull channel will continue or test further down. At the moment, the odds slightly favors the bears.
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Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
The Emini fell below yesterday’s low. It therefore triggered a sell signal on the daily chart. Yet, there was a 20 Gap Bar buy setup on the 60 minute chart, which prevented a strong selloff.<\/p>\n The Emini has been sideways for 2 days as it awaits Wednesday’s FOMC announcement. While there are measured move targets between 2340 – 2375, the odds are that the Emini will pull back 1st. The downside targets are the 2016 close, and then the August high. Therefore, the odds favor a 2 – 5% correction in February or March.<\/p>\n <\/p>\n See the weekly update<\/a> for a discussion of the price action on the weekly candlestick chart and for what to expect going into next week.<\/p>\n Traders can see the end of the day bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n<\/a><\/p>\n
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