EURUSD has formed higher lows connected by a rising trend line visible on its 4-hour time frame. Price looks ready for another dip to support near the Fibonacci retracement levels.

The 38.2% Fib is close by at 1.0982 while the 50% level is near the 100 SMA dynamic support at 1.0934, as well as an area of interest or former resistance.

A larger correction could reach the 61.8% level near the trend line at 1.0886. The 100 SMA is trying to stay above the 200 SMA to confirm that the path of least resistance is to the upside or that the rally is more likely to gain traction.

Stochastic is heading down to show that bearish pressure is present and that the correction could keep going until oversold conditions are met. RSI also has room to slide before reflecting oversold conditions, so price could keep following suit while bearish momentum is in play.

A break below support could translate to a reversal from the uptrend.

EURUSD would likely take cues from US top-tier catalysts lined up during the week. The FOMC minutes are lined up for the middle of the week and might contain clues on whether or not the central bank is likely to cut interest rates anytime soon.

Recall that the dot plot of projections hinted at three interest rate cuts for the year and Fed head Powell noted that further discussion on the timing of easing could be seen in the Fed minutes.

Dovish remarks from policymakers could translate to dollar declines and a pickup in risk-taking, which might mean upside for the currency pair. On the other hand, the possibility of the Fed standing pat due to strong jobs data and wage inflation might mean upside for the dollar, leading to a selloff for EURUSD.