From a technical perspective, EUR/USD is testing again the top of its 300-pips range that has held for nearly four full months now.

EUR/USD met key resistance at 1.1890 earlier today. After yesterday's bearish momentum price action we could see the beginning of the downtrend. However, the euro might continue higher but seems to be facing a crucial hurdle ahead. At resistance at 1.1890/1.1900.

On the downside, there are many important support levels, starting with 1.1830. There is also a key bullish trend line forming with support on the same chart. If there is a downside break below the ascending trend line support and forming a new low, the pair could test the 1.1800. Any further losses may perhaps lead EUR/USD towards the 1.1750 support zone.

On the upside, there is a strong resistance in progress near the 1.1890 and 1.1900 levels. To continue higher and starting a strong rally, the pair must settle above the 1.1900 resistance zone. A break of this level could potentially lead to a rapid rise towards the major resistance at 1.192 (November 9 High) .