The EUR/USD did not see any kind of retracement yesterday, the pair was much stronger than anticipated, especially after the FOMC minutes were published late in the evening (CET). (“For today we expect some choppy price action and some profit taking after the 100 pip advance since Monday morning. We could see another test of 1.3820 but this should cap any rise today. Risk oriented traders can look for an intraday short entry at this level with a tight stop. A setback down to support (green box) can provide a good long set-up in-line with the trend.”)
With the rally last night following the FOMC minutes the medium term down trend line was broken to the upside. A look at the 480 min chart shows the bullish picture. Short term EUR/USD is massively overbought. The most likely scenario for today is a technical correction towards 1.3790:1.3820 after an early attempt to re-test last night`s high. If you see signs of a double top in the 1.3870 area you can try a counter-trend short position with a tight stop. Trend-followers should wait for a set-back towards 1.3800 for entering long again.