EURUSD seems to be hitting a ceiling at its short-term falling trend line around the 1.0800 mark, potentially putting it back on its selloff.

Technical indicators are reflecting the presence of bearish pressure, possibly taking EURUSD back down to the swing low at 1.0605 or lower. The 100 SMA is below the 200 SMA to indicate that the downtrend is more likely to gain traction than to reverse, but the gap between the indicators is narrowing to reflect slowing selling pressure.

A break above the trend line and area of interest could be enough to signal that a reversal from the downtrend is in the works. This could take EURUSD up to the swing high near 1.0900 and beyond.

Stochastic is on the move down, so price might keep following suit until the oscillator reaches the oversold zone and turns back up. RSI has more room to head south, so EURUSD could be under more selling momentum from here.

EURUSD might take cues from the US initial jobless claims report tomorrow and Friday’s UoM preliminary consumer sentiment index. Further signs of weakness in the jobs market might mean fresh downside for the dollar, especially since the latest NFP release came in below estimates.

On the other hand, another positive surprise in the weekly jobless claims report might spur intraday gains for the US currency. Note that European markets are closed for the Ascension Day holiday, so liquidity is thinner than usual.

The UoM consumer sentiment index is slated to show another dip in confidence, as Americans might still be reeling from higher cost pressures and the prospect of interest rates staying higher for longer. However, an improvement in financial confidence might translate to stronger spending activity down the line, possibly keeping the dollar supported.