The Federal Reserve's cautious message has checked the momentum in the euro nL8N2DU1CT, with EUR/USD's short-term direction in the balance, as two powerful but conflicting technical signals have appeared on the daily chart.
However, the outstanding large EUR/USD long position hints at the downside being more at risk in coming sessions.
A bearish engulfing pattern formed on last week's Wednesday and Thursday candlestick lines: a smaller, white-bodied candle followed by a larger black one.
However, a bear trap has subsequently been left under the 1.1258 Fibo, a 23.6% retrace of the 1.0728 to 1.1422 (April to June) rise.
A bear trap is where the market closes under an important level and then subsequently reverses.
IMM data for the week ending June 9 saw an equivalent long EUR/USD cash position rise to 12.0 billion euros, from 10.2 billion euros the previous week.
However, EBS data since June 9 shows traders may well have exited some of those longs.