EURUSD recently fell through its double top neckline to confirm that a reversal from the previous uptrend is in the works. Using the Fib retracement tool shows additional levels where sellers might be hoping to join in.

The 38.2% Fib is at 1.1057 then the 50% Fib is at 1.1088. A larger correction could reach the 61.8% Fib at 1.1120 near the 100 SMA dynamic inflection point. If any of the Fibs hold as resistance, EURUSD could resume the slide to the swing low at 1.0975 or lower.

On the subject of moving averages, the 100 SMA is above the 200 SMA for now to suggest the presence of bullish momentum. However, the gap between the indicators has narrowed significantly to point to a potential bearish crossover. EURUSD is also trading below both moving averages, so these could hold as dynamic resistance.

However, stochastic is indicating oversold conditions or exhaustion among sellers, so heading higher would mean that buyers are ready to take over. The oscillator has plenty of room to climb before reaching the overbought zone, so the correction could keep going until that happens.

Similarly RSI is in the oversold region to show that sellers are exhausted and could use a quick retest of nearby resistance zones, possibly at the broken neckline around 1.1000 to gather more bearish energy.

EURUSD is likely to take cues from the FOMC minutes and the release of US inflation data, namely the CPI and PPI figures, to determine longer-term dollar direction.

Note that the FOMC opted for a larger 0.50% rate cut in their September meeting, so the transcript could contain more dovish commentary. Meanwhile, the CPI and PPI reports are slated to reflect slowing inflationary pressures, possibly leading to more downside for the dollar. Stronger than expected data, on the other hand, could mean upside on weaker expectations of more aggressive Fed easing.