EUR/USD Short Setup: Capitalizing on Resistance and Bearish Momentum

Market Structure and Entry Rationale

The EUR/USD pair is currently trading at 1.08319, exhibiting a sideways trend as observed over recent sessions, with a slight bearish tilt noted by the -0.17% change over the past 24 hours. My technical analysis indicates that the pair has been struggling to sustain moves above the 1.0859 resistance, which aligns with the upper bound of the day range. This level, alongside the more significant resistance at 1.09, forms a clear ceiling.
My setup targets a short entry at 1.0841. This entry point is strategically chosen, anticipating a retest of the immediate resistance area around 1.0859 before a potential rejection. The structure is clear: the market is consolidating, and a failure to break higher suggests a downside continuation within the established range. Placing the stop loss at 1.0884 provides sufficient buffer above the 1.0859 resistance, invalidating the short thesis if price manages a sustained break above this zone.

Risk Management and Downside Target

For this swing trade, risk management is paramount. Our stop loss is set at 1.0884. The take profit target is identified at 1.0754. This level is strategically placed just above the key support at 1.075, which has historically shown to be a significant psychological and technical floor. The intention is