EUR/USD: Strong Reversal Likely

Two big bull days closing near their highs.

First reversal up from tight bear channel is typically minor, which means it is more likely to lead to trading range than to bull trend.

Reversal up from wedge bottom usually has at least 2 legs up, and often reaches last lower high.

Traders will buy first 2- to 3-day pullback, expecting second leg sideways to up.

Since this is probably a bull leg in what will be a trading range, and trading ranges disappoint traders, rally should stall today or tomorrow.

Reversed down from above yesterdays high. Since third consecutive big bear day is unlikely, today will probably be a trading range day.

Day traders have been selling rallies and buying selloffs, and have been taking quick profits.

Trading range day will probably continue.

If there is a series of big trend bars up or down, day traders will switch to swing trading, but trading range day is more likely.

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