EURUSD has been trending lower inside a falling channel on its hourly time frame, and it looks like resistance is holding again. The pair could set its sights on the downside targets marked by the Fibonacci extension tool next.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. The moving averages are also near the channel top to add to its strength as resistance.

Stochastic is heading south from the overbought region to confirm that bears are taking over while buyers are taking a break. The oscillator has plenty of room to slide before reaching the oversold area to reflect exhaustion among sellers.

Similarly RSI is on the move down to show that bearish pressure is in play, so EURUSD could keep following suit until oversold conditions are met.

EURUSD could take cues from flash CPI readings due later in the week, as well as the US ISM manufacturing and services PMIs.

A slight dip in eurozone inflationary pressures is eyed, but stronger than expected results might still underscore the hawkish tilt of most ECB officials. The headline figure is slated to fall from 8.6% to 8.3% year-over-year for February.

Meanwhile, upside surprises in the US PMI readings could keep traders hopeful that the Fed would carry on with its tightening cycle for much longer.

In particular, the jobs components of the PMI surveys might gather increased market attention, as traders price in expectations for next week’s NFP release. Recall that the US economy surprised with a very strong jobs figure for January, so another upbeat result for February could confirm that more rate hikes are in the cards.