Today’s high in the EUR/USD Forex market so far is below yesterday’s high. Today’s low is above yesterday’s low. Today is, therefore, an inside day. It is the second consecutive inside day. If it remains an inside day, there will be an ii pattern on the daily chart, which is a breakout mode pattern.
When there is a breakout above an ii late in a bull trend, it typically does not get far before reversing. It usually is the final bull flag.
Strong rallies often end with an ii. Therefore, a breakout below today’s low would trigger a credible sell signal. Traders would look for about TBTL (Ten Bars and Two Legs) sideways to down.
If today goes above yesterday’s high, or below yesterday’s low, there would be no ii. Since yesterday is a weak buy and sell signal bar, today would probably not go far above or below yesterday. This is especially true with most traders leaving around 10:15 a.m. PST today for the Christmas break. Traders appear to be waiting for Brexit news before deciding on the direction of the next move. This should come by the end of the year.
The 5-minute chart of the EUR/USD Forex market rallied a little, and then sold off back to near the overnight open. The range is only about 30 pips. Day traders have been scalping for 10 pips.
If there is Brexit news, or any other news, today could trend up or down. Since it is an ii, it is a sign that traders are expecting a big move on the daily chart to begin soon. Today will probably remain an inside day.
Since yesterday is a weak buy and sell setup, if EUR/USD breaks out of yesterday’s range, it will probably not get too far today. That is, unless there is big Brexit news.
EUR/USD Could Be Setting Up Breakout Mode Pattern
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