Correction or reversal?
The EURUSD is squeezing a big higher and moves toward the 38.2% of the move down at the 1.11618 level. The miidpoint of the move down comes in at 1.11772. The lows from the London morning session reached 1.11827.
I would expect, that if this is just a correction, the 1.1177 level should be a ceiling that traders lean against. If this is a reversal, we will see that level give way along with the 1.11827 low and there could be more short covering. Patient traders can lean against these levels and see what happens.
Days like today can go with the flows. The low reached can perhaps be traced to the Asia Pacific high from yesterday or the 38.2% from the Wednesday low when the EURUSD price based near the 100 hour MA and rocketed higher. That is the bullish slant. The not so bullish is the breaking of the trend line and holding below it (see hourly chart). In fact the correction just stalled there. So that may be the more current story to follow technically.
