![\"EURUSD](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/05\/EC-10.png\" "\\"\\"")
<\/a><\/p>\nThe 240 minute EURUSD Forex market rallied strongly over the past 2 days from the bottom to the top of its 4 week trading range.<\/p>\n
After the tight bear channel to the bottom of the 4 week trading range on the 240 minute chart, the odds favored a 50% bounce. Furthermore, the chart should have tested back down. Instead, the lower probability outcome is now underway. The bulls have consecutive big bull bars at a level where a reversal down was more likely. Consequently, the odds of a reversal down from a lower high have fallen to about 50%. The bulls want a measured move to above the May 8 top of the 4 week range.<\/p>\n
Double top or expanding top<\/h4>\n
The magnet of the 1.1299 November 9 top of the sell climax keeps pulling on the market. Yet, the bulls need a strong breakout above the May 8 top of the 4 week range. Without that, the odds favor another selloff. It could come from a double top with the May 8 high. If instead it comes from 50 – 100 pips higher, traders would sell a reversal down. This is because that would then be an expanding triangle top, where the 1st leg up was the April 25 high.<\/p>\n
Overnight EURUSD Forex trading<\/h3>\n
The 2 day rally on the 240 minute chart is in a 6 bar bull micro channel. Therefore the bears will probably need at least a micro double top before they can take control. As a result, the downside over the next couple of days is probably 50 pips. <\/p>\n
While the rally can continue up above the May 8 high without pulling back, that would be unusual. If the EURUSD gets to the 1.1022 May 8 top of the range today or tomorrow, it will probably enter a trading range for a day or two.<\/p>\n
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Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
The Emini rallied on the open to a new all-time high above 2400. It then entered a tight trading range for the next 5 hours.<\/p>\n After a brief early rally to a new all-time high, the Emini entered a tight trading range for the rest of the day. Hence, it was in Breakout Mode. Therefore, the bulls wanted trend resumption up from a High 2 bull flag. Yet, the bears want trend reversal down from a double top lower high major trend reversal. The breakout will probably come tomorrow.<\/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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