Morgan
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Morgan in Morgan Merrick - SMB Capital,

EUR/USD Near Short-Term Support

The EUR/USD is currently at a support level, which is an attractive area for short-term long trades, including day trades and scalps.  Over the next few days, I will be watching for setups including minor fakes and double bottoms for an entry long.



 This level is a previous support, and also the Fibonacci 0.618 level on the 4-hour chart, making it a more significant area.  This level includes 1.3650-1.3700 area, which at the time of writing this, is currently in range.  The larger picture is also bullish and has been for some time, which generally supports long trade ideas.  However, we are near all time highs, which is why I am not looking for swing trades.  What we have seen recently is a minor pullback, which allows for attractive entry prices to continue long.


Conservative price targets include the 1.3780 area, which is the Fibonacci 0.382 level of the recent downswing, and the 1.3940 area, which is the recent resistance and all time highs.  It is possible that price action will continue higher, but at all-time highs that can be a challenging thing to predict.  The conservative risk option would be to close out of long positions near the highs, and consider new trades after evidence is shown of upcoming strength or weakness.


If price action falls through the support and significantly breaks the 1.3650 level, I would cancel all plans for long trades.  This would be an indication weakness in the short-term.


To learn more about the analysis and methodology used to provide this insight, visit http://smbu.us/smbwh