EUR/USD Price Analysis: Bulls come up for air in a 50% mean reversion

• EUR/USD bears looking to step in again as the price corrects 50% of the drop. 
• The single currency refuses to stay down as traders take profits resulting in a sharp correction. 

EUR/USD has been a rollercoaster of a ride since last week's market rout and the resurfacing of coronavirus contagion fears in the emergence of the new Omricon variant. This has seen the single currency rally vs the greenback. The expectations that the Federal Reserve would no longer be willing to speed up the pace of tapering were negated today. Despite the fears of contagion of the variant that, so far, has not had enough time to show whether current vaccines are effective or not, the Fed could step on the gas after all.

Today, the Fed's chairman, Jerome Powell, said it is time to talk about speeding up the pace of tapering. This has led to a major sell-off in the euro for which it is attempting to recover a significant portion at the time of writing.

The following is an analysis of the hourly chart that illustrates the volatility of the euro vs the US dollar and arrives at a consolidative conclusion for the time being. 

EUR/USD H1 chart

As can be seen, the price has corrected over 50% of the drop in the New York session and would be expected to start to decelerate at this juncture. That being said, there is room to go for a test of the M-formation's neckline lows near 1.1340. However, the bias is to the downside below there for the forthcoming sessions mid-week, although the sharpness of the correction likely means that bears are not entirely committed which likely leaves the price sideways between the recent lows near 1.1230 and highs near 1.1385.