EURUSD recently broke through the minor psychological resistance at the 1.0850 mark and reached a high of 1.0982 before retreating. The Fibonacci retracement tool shows where more buyers might be hoping to jump in.

The 38.2% level is holding as support at the 1.0909 area so far, but a deeper correction might still reach the 50% Fib at 1.0887 near the 200 SMA or the 61.8% Fib that lines up with the former resistance. If any of these are able to keep losses in check, EURUSD could resume the climb to the swing high or higher.

Stochastic is already on the move up to suggest that buyers are in control, and the oscillator has a bit of room to climb before indicating exhaustion among buyers. RSI is on middle ground to signal consolidation, but it seems that the oscillator is pointing slightly up as well.

A break below the 61.8% Fib could signal that euro bears have taken over and might drag EURUSD back down to the lows at 1.0800 next.

EURUSD is likely about to take cues from US reports like the CPI, PPI and retail sales figures since these are expected to set the tone ahead of the FOMC decision next week.

Recall that data points mostly came in below expectations last week, although the NFP still surprised to the upside. With that, another round of downbeat data might further undermine the Fed’s hawkish bias and translate to losses for the dollar.

On the other hand, strong inflation and spending figures could reinforce the view that the US economy is resilient and that the Fed can afford to keep borrowing costs higher for longer, possibly leading to gains for the US dollar.

There are no major reports from the eurozone this week, so the shared currency might keep functioning as a counter currency in the next few days.