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EUR/USD Testing a Price Top

EUR/USD has been rallying this week after it tagged 1.1250 as support at the end of last week. 

EUR/USD 4H Chart 4/19

(click to enlarge)

As we can see in the 4H chart, the support held against a dip from a price top. Price is now testing that said price roughly between 1.1325 and 1.1455. 

Note that price is testing the support area of that price top. We can see that this area also provided resistance before, in March and in February. 

If EUR/USD fails to push above 1.1350, and then falls back below 1.13, we should look for a test of 1.1250 with risk of extending last week's dip towards at least 1.12. 

If you have been following my posts on EUR/USD, you will remember that I had a long position in late March, but faded it out at 1.14 because of the resistance seen in the daily chart. Also, because of the year-long range seen in the daily chart, selling around 1.1450 would be a conventional range play.

In this trade idea, the target would be somewhere around the middle of the range, which would be around 1.10. With that in mind, even a target towards 1.11 is viable in the 4H chart. The time frame would be short to medium-term, looking at 2-week to a month horizon. 

EUR/USD Daily Chart 4/19

(click to enlarge)