Good morning,
So, recent Fed statement was treated as dovish, because there was a hint that three rate changes are more probable than four. As a result, EUR and other USD related assets have shown upside action. Situation is looking better on EUR, but this is not final point yet.
In fact, EUR shows contraction price behavior as it forms lower tops and higher bottoms. If you will use your imagination, you could recognize here a kind of diamond pattern. Thus, to cancel all doubts, EUR needs to show upside breakout, reversal swing, prefferably above "C" point.
Besides, today we could get bearish grabber. If it will be formed - it will promise nothing good to bulls.
That's being said, although upside action was nice, but final bullish confirmations still stand ahead:
On 4-hour chart, "222" Buy has started pretty nice right from our OP target. Now we could recognize megaphone type of action. So, here again - all things stand around upside breakout as trend line as megaphone pattern...
Still, it is not forbidden to take long position, just control that upside breakout will happen later. At the same time, you need to be very careful with choosing an area where you could go long. Right now it seems that 1.23-1.2320 area could be suitable for this purpose, but be sure that you have some patterns that confirm this. First is - daily AB=CD or other extension. Second - some bullish reversal pattern on 5-min chart. Without these issues it will be rather risky game.