Fading the EUR/USD Bounce: A Short Opportunity as Key Resistance Holds Strong

Technical Setup at a Critical Juncture

My focus is squarely on EUR/USD today, which is currently sitting around 1.08425 after a modest -0.07% move over the last 24 hours. While the trend is broadly sideways, we've seen an attempt to push higher within the day's range, hitting 1.08537. This brings us right up against a significant resistance level at 1.0854. For me, this is a key level being tested, and my data suggests it's holding firm.
My short entry at 1.0846 is predicated on a rejection from this resistance. We've seen sellers step in repeatedly around this area. My stop loss is placed strategically at 1.0864, just above the 1.0854 resistance and the next significant resistance at 1.09, giving us enough room to breathe without exposing us to excessive risk. The target for this swing trade is 1.081, aiming for the initial support at 1.0831 to break, and then a push towards the stronger support at 1.