EUR/USD: Short Opportunity as Resistance Holds

Technical Outlook and Entry Rationale

The EUR/USD pair is currently trading at 1.08723, having seen a modest 0.21% change over the last 24 hours. The market has been exhibiting a distinct sideways trend, with the day's range confined between 1.08389 and 1.09057. My analysis indicates a compelling short opportunity given the price action around critical resistance levels. We have observed consistent rejection around the 1.0906 and 1.09 psychological resistance zones. This failure to sustain higher prices, coupled with the current positioning within the day's range, suggests an underlying weakness.
My entry for a swing short position is set at 1.0883. This level positions us tactically below the immediate resistance identified, anticipating a continuation of the selling pressure that has capped upward moves. The structure is clear: the market is struggling to overcome overhead supply.

Risk Management and Profit Targets

Discipline over emotion is paramount in trading, and my risk management for this setup is precisely defined. A Stop Loss is placed at 1.0936. This level sits strategically above the 1.0906 and 1.09 resistance, and importantly, beyond the next key resistance at 1.095. This placement respects the market's structure, allowing for minor fluctuations while protecting capital if our primary thesis proves incorrect.
For profit targets, I am looking for a move towards the lower support structures. My Take Profit is set at 1.0776. This target aligns with a break below the immediate support at 1.0839 and