Petr Suchanek
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Petr Suchanek in Petr Suchanek - SMB Capital,

EUR/USD AT A MAJOR DECISION POINT

First I want to highlight that you can watch my analyses and trade ideas also on TWITTER (@FlexibleTrader) and you can also watch my LIVE TRADES on YouTube (here). So be sure to check out MY TRADING STYLE in more details!


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The EUR/USD Currency Pair

seems to be stronger and stronger, while it got back near the major resistance 1.3966. Will it continue or is it only a trap for optimistic buyers? Let us have a look at some possible scenarios:

Although there is a major resistance at 1.3966, there is also a minor resistance at 1.3950, which is currently being attacked. Based on the price action in H4 timeframe, it is possible to define three main scenarios, one for long, two for short.

LONG SCENARIO #1:

The price makes a very strong break-out of 1.3950 and 1.3966 and closes strongly above. Then a higher probability is on the bull side, so I would focus on buying a pullback at around 1.3950-1.3960. But it is necessary to mention a round number 1.4000, which is not far above, so be careful with longs and get prepared for covering your long position after any sign of weakness at 1.4000.

SHORT SCENARIO:

#2: The price makes a break-out of 1.3950 and 1.3966, but then pulls back quickly below the major resistance. Then it is the time for potential short positions, target might be significantly lower, in my opinion 1.3782.

#3: The price makes no break-out of 1.3950 and 1.3966, but falls lower below from the current levels (to 1.3850-1.3860 zone). Then it is a sign of weakness and high-potential shorts may be taken at the re-test of 1.3900 with the target at 1.3782.

What is your opinion about Euro? I am looking for your feedback. 

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As usual, my trading idea is based on an uncoventional trading methodology used in our SMB Capital Forex and Futures Training Program.

For a deeper understanding you can join us on http://www.smbtraining.com/overview/forex-training

or you can watch my LIVE TRADING VIDEOS ON YOUTUBE.

In case of any questions or comments, be sure to send me an email or contact me via other social media as stated below.

Petr Suchanek

Forex, Futures &Options Trader

Email: psuchanek@smbcap.com

Twitter: @FlexibleTrader

StockTwits: http://stocktwits.com/FlexibleTrader

YouTube Channel: http://bit.ly/17jWiog

Training program: http://smbu.us/smbwh