The EURUSD has traded to a new session high in the US session and is working toward the 1.1000 level and the highs from November and December between 1.1008 and 1.1016. The area is no secret to traders. That dynamic gives traders looking to limit risk an opportunity to lean against the area. If the price goes above, they can get out (and/or reverse position). The hope is to “risk a little, to make more than a little”. Successful traders want trades where the loss potential is less than the gain potential. If you “risk a little” you have a greater chance to “make more than a little” (or what you risked).
If the resistance above does hold, the 1.0958 to 1.0964 would be the closest target. Admittedly, that area was more defined back in November, but if the price can move below that area, I would still expect more selling with the 100 hour MA at 1.0940 as the next target to get to and through.
A move above the 1.1016 opens the upside with the price trading at the highest level since August 10. The next major target on the daily chart would be up to 1.1095 to 1.11346 (see daily chart below).
This article was written by Greg Michalowski at www.forexlive.com. Source