![\"Day](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/07\/EC-17.png\" "\\"\\"")
<\/a><\/p>\nThe 4 hour EURUSD Forex chart shows a rally up from a Higher Low Major Trend Reversal (HL MTR) at the bottom of the trading range. The goal after a HL MTR is a 2nd leg up, and the EURUSD is having a 2nd leg up. The bull reversal last night was strong enough to have a 2nd leg up as well. The rally of the past 2 hours qualifies. While there is still room to the bear trend line above, the consecutive buy climaxes up from the low will probably lead to a trading range soon.<\/p>\n
The daily chart of the EURUSD Forex market has had 2 legs down in a trading range over the past month. Because the EURUSD is at the bottom of the range, the probability favors the bulls. The bulls had a small buy signal bar 3 days ago, and the EURUSD rallied more overnight. Yet, the bulls have been unable to rally strongly to convince traders that this is more than a leg in the trading range. Therefore, the bears still have a 50% chance of a bear breakout below the month-long, 200 pip tall trading range. The bears see the rally as a bull leg in a Broad Bear Channel.<\/p>\n
EURUSD Forex targets<\/h3>\n
The target for breakout traders is a measured move up or down, based on the 200 pip height of the range. Because the EURUSD is in Breakout Mode, the probability that the 1st breakout will be profitable is 50%. Hence, there is a 50% chance that the breakout will reverse. If the reversal is strong, the market will usually then try to breakout in the opposite direction.<\/p>\n
There is no breakout yet. The location is good for the bulls, while the month-long bear trend is good for the bears. Yet, the lack of momentum down means that the selloff is probably a bear leg in a trading range rather than the start of a bear breakout.<\/p>\n
Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
Yesterday was an outside day, which increased the chances of today being an inside day. The Emini rallied from a double bottom test above yesterday’s low, but stayed below yesterday’s high. Hence, it was an inside day. The selloff to the low of the day was just a pullback from the initial rally. This is true despite it falling below the initial bull leg. Today was a Small Pullback Bull Trend for the 2nd half of the day.<\/p>\n The Emini is in an 11 day tight trading range, and therefore in breakout mode. The breakout can come at any time. A bull breakout will probably fail within a few days because the Emini has rallied too many bars without a pullback. Many institutions want to reduce risk, which means they will start to take profits.<\/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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