EUR/USD: Potential Downside Rejection from Range Highs for a Swing Short

Market Overview and Technical Outlook

The EUR/USD pair is currently trading at 1.08813, reflecting a 0.29% change over the last 24 hours, with the day's range bounded by 1.08343 and 1.09284. The overall trend remains largely sideways, as evidenced by the recent price action oscillating between established support and resistance levels. From a technical perspective, I observe the pair approaching critical resistance around 1.0928, which has proven to be a significant barrier. Further resistance sits at 1.095 and the psychological 1.1 level. While the market is consolidating, these upper bounds present potential zones of rejection, signaling exhaustion from buyers. My analysis indicates a high probability of the price failing to sustain a break above these key resistance areas. As I always say, "Trade what you see, not what you think." The chart shows strong overhead resistance.

Swing Trade Setup: Short EUR/USD

Based on the technical structure, I am initiating a swing short position on EUR/USD. My entry point is set at 1.0896, anticipating a rejection from the aforementioned resistance confluence. This entry positions us to capitalize on a potential move back towards the lower end of the current range, and possibly beyond.
My stop-loss is placed at 1.0971. This level is strategically positioned above the 1.095 resistance, providing sufficient room for minor fluctuations while clearly defining our maximum risk should the market invalidate our bearish thesis by breaking decisively higher. For the take-profit target, I am looking at