A key level is coming into play for the EUR/USD. As mentioned earlier in the session by my colleague Skerdian, a strong topside resistance level present at 1.1900 to 1.1908. Price action has broken out to the bull during today’s U.S. session. A possible test of this level may be coming soon.

Technicals

Awhile back I mentioned the probability of the EUR/USD returning to test the 1.1900 level. It took longer than anticipated, but it looks as though the year’s uptrend has resumed.

EUR/USD 60-Minute Chart: Challenge of 1.1900

Bottom Line: 1.1900 to August’s high of 1.1908 is an area of interest and one that will be hotly contested. A short trade from here is a premium.

I am looking at an entry zone of 1.1899-1.1908 for the short. A 1:1 scalp will be my initial play, with a longer term position held looking for 2:1 and 3:1 risk once price exhaustion has been confirmed.

As always, trade smart and for tomorrow!