EURUSD is trending higher, forming higher lows and higher highs inside a rising channel on its short-term time frame. Price is finding support at the area of interest around the Fibs and channel bottom.

In particular, the 61.8% retracement level is holding as support and lines up with the 200 SMA dynamic inflection point. A larger pullback could still find buyers at the 1.1000 major psychological level just slightly below the channel bottom, which might be the line in the sand for a correction.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. In that case, EURUSD could make its way back up to the swing high around the 1.1200 major psychological handle.

Stochastic is on the move up to show that buyers are in control, but the oscillator is closing in on the overbought zone to signal exhaustion. RSI is also heading higher and has more room to climb before reflecting overbought conditions.

There are no major reports due from the eurozone throughout the week, so traders might take cues from the US economy for this EURUSD pair. The minutes of the FOMC meeting are up for release, and this might bring strong volatility later on.

Recall that the Fed hiked interest rates in their latest policy decision, so traders are keen to find out how aggressive the central bank could be with its tightening plans. Data has been mostly stronger than expected, particularly on the inflation front, so many are still hoping to see consecutive hikes or even larger increases in borrowing costs.

Any indication that the Fed is still playing it safe might dash hopes of a 0.50% hike in the next meeting, possibly leading to losses for the dollar.