In yesterday’s Forex U.S. Overnight Preview, I broke down the likely scenario facing the EUR/USD for the remainder of the week. As of this writing, it appears that institutional money is driving price north and chewing up anyone that gets in the way.

The daily chart illustrates today’s bullish break as well as the extension of this week’s range. Buyers are in complete control, crushing any and all resistance on the way to 1.2100. Thus far, we have seen stops get run just above the following levels:

• November’s high, 1.1960
• Psyche level, 1.2000
• Quarter handle, 1.2025

It has been a bloodbath for position shorts as the EUR/USD grinds higher. Here are the topside resistance levels to watch for the rest of today’s forex session:

• Resistance(1): Psyche level, 1.2050
• Resistance(2): Quarter handle, 1.2075
• Resistance(3): 2017 high, 1.2091

Bottom Line

The only short location that interests me is from 2017’s high of 1.2091. I will be selling from 1.2085 with an initial stop at 1.2106. This trade is a 1:1 R/R play, looking for 21 pips profit.

Today’s move is going to give us a premium shorting opportunity for early next week. The high of 2017 will bring participation and create a concrete stop out point. If you are going to enter the market in front of this level, be sure to wear your knife-catching gloves. Keep stops tight and leverage in check.