EUR/USD Short Setup: Navigating Sideways Action Towards Key Support

Market Overview and Technical Rationale

The EUR/USD pair is currently trading at 1.08176, reflecting a 24-hour change of -0.00324, or a 0.3% decline. The market has been exhibiting a distinct sideways trend, with the daily range confined between 1.0769 and 1.08662. My technical analysis indicates that the pair has struggled to sustain any move above the 1.0866 resistance level, with 1.085 also acting as a significant psychological barrier. This suggests a potential rejection at these higher bounds within the established range.
My assessment is that the recent price action indicates a lack of conviction from buyers to push beyond current resistance, leading to a consolidation that may resolve to the downside. The data speaks, and the current inability to break higher supports a bearish short-term outlook.

Trade Setup and Risk Management

Given this technical picture, I am initiating a swing trade with a short position on EUR/USD. My entry point is set at 1.0833. This level positions me to capitalize on a potential move