Reverses the earlier declines
The EURUSD has had a down and up trading day to start the week of trading. After opening higher and testing the high from Friday but failing to extend above, the EURUSD fell back down - correcting around 38.2% of the move up from the Thursday low to the Friday/Monday highs (at 1.0779 - see chart below).
From that point, the EURUSD has seen it's fortunes reversed as as US traders enter for the day, the pair is making new day highs.
Looking at the hourly chart, the 1.0918 level is the high corrective price after the FOMC spike higher last Wednesday. That becomes the next target to the upside in trading today. Look for traders to slow down against this level. The range for the day will be around 152 pips for the day. That should slow the climb. If it races above without a pause, the trend move off the London low is more serious. So be aware. Shorts may have some more covering to do.
The pair has been above and below the double top since peaking (see 5 minute chart below). Staying above that level would keep the buyers most comfortable. Absent that, keep an eye on the 1.0856-67 area (see chart below) as the risk defining level for the longs. If the buyers are to remain in control, staying above the 1.0856 level will be key. This is current 50% and also the low correction point after the failed attempt above the double top (see chart below).
PS Draghi at 10 AM