Marc Principato, CMT
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Marc Principato, CMT in Marc Principato, CMT - SMB Capital,

EURUSD SWING TRADE LONG SCENARIO

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EURUSD is currently in a bullish pennant on the 4 hour time frame. The most interesting part is the next major support level at 1.3650 area.I am looking for bullish validation for a swing trade long.
If price can retrace from current levels back into the 1.3650 area, we have multiple support levels that are lining up for a high probability buying area.  The potential for this trade is also significant. With targets being around 1.3730 and 1.3820 areas. 
The supports that are lining up are significant for the following reasons: a) 1.3650 is a major retracement of a very broad swing b) It lines up with the lower trend line of the pennant formation c) there is a minor extreme price zone based on the previous bullish swing. 
I am looking for price action validation if price can retrace back into the 1.3650 area. Any selling below 1.3600 will cancel out this trade idea and be a good place for a stop in my opinion. Validation can come in forms of  lower time frame price structures or particular candlestick reversal patterns,
To learn more about how I conduct this analysis or trade, click here.