![\"EURUSD](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/02\/EC-13.png\" "\\"\\"")
<\/a><\/p>\nBecause the 240 minute EURUSD chart has both a reasonable double top and a reasonable double bottom, the bulls and bears are balanced. Hence, the EURUSD is again in breakout mode. Last week’s rally broke strongly above the bear trend line. The odds therefore favor at least a bounce from around last week’s low. This would therefore create an attempt at a major trend reversal.<\/p>\n
The EURUSD 240 minute chart has had repeated swings up and down in tight channels. Yet, it is still in its 4 month trading range. Furthermore, that range is a the bottom of a yearlong trading range. <\/p>\n
Major trend reversal attempt this week<\/h3>\n
Last week’s rally broke far above the bear trend line on the 240 minute chart. In addition, it had many bars completely above the moving average. This is a sign of strong bulls. As a result, the odds are that it will find support around last week’s low. Hence, it will probably try to create a major trend reversal this week. Since the 2 day bear channel is tight, the bulls will probably need to stop the selloff for a day or two before they can create the bottom attempt.<\/p>\n
Double top bear flag<\/h3>\n
The bears see the 2 day selloff as a double top bear flag. But, because the selloff is still above the January 11 major higher low, it is more likely just part of the trading range that began with that low. Since reversals within trading ranges usually come after breaking through support and resistance, the bottom might not come until after a break below that January 11 low.<\/p>\n
Head and shoulders bottom<\/h3>\n
On the daily chart (not shown), the bulls want this month long selloff to rally from above the December low. If so, they would buy the reversal up because that would be an attempt at a higher low major trend reversal. Furthermore, it would be a head and shoulders bottom.<\/p>\n
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Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
I had to leave a little early today. The Emini began with a gap up and a trend from the open bull trend. Yet, it reversed down after a small final flag. The bears got 2 legs down, but the bulls bought the selloff. Hence, the Emini rallied again for the rest of the day.<\/p>\n The Emini gapped up again on the weekly chart. This is therefore consecutive gaps up on the weekly chart. Because that is unusual, it is unsustainable and climactic. Yet, ther is no top yet.<\/p>\n Since the daily chart is in a buy climax and last week ended with an ii pattern, the odds are that the rally will end today or tomorrow. Most climaxes are followed by trading ranges, not reversals. Therefore, the Emini will probably go sideways for the rest of the week. <\/p>\n It is in the cluster of measured move targets. It therefore can turn down at any time. Yet, the bears will probably need at least a micro double top. The odds still favor a test of the December low at some point in the next couple of months. That is therefore about a 5% pullback.<\/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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