Technical outlook:
EURUSD rallied as expected, post FOMC yesterday and managed to hit 1.1988 intraday today, before pulling back. The single currency pair is seen to be trading around 1.1940 mark at this point in writing and bulls might be preparing to continue further towards 1.2040/50 levels in the next few trading sessions. A bearish reaction might be expected around 1.2050/80 levels as bears might be inclined to be back in control.
Intermediate support is seen towards 1.1882, while resistance is at 1.2242, followed by 1.2350 levels respectively. Also note that fibonacci 0.618 retracement of the recent drop between 1.2113 and 1.1835 is seen around 1.2000/30 levels and hence a bearish bounce remains high probability if bulls manage to push through those levels.
The overall structure has turned bearish since 1.2350 highs registered in January 2021 and EURUSD has been carving lower lows and lower highs since then. Furthermore, fibonacci extensions are pointing towards 1.1600 levels at least, which is November 2020 support as highlighted on the daily chart. A break below the trend line support would be extremely favorable to bears, going forward.
Trading plan:
Remain short with stop @ 1.2350, target @ 1.1600
Good luck!