EURUSD is starting to trend lower and is moving inside a descending channel on its hourly time frame. Price is bouncing off support and could be due for a pullback to resistance around the 1.0925 level.

The Fibonacci retracement tool shows additional levels where sellers could hop in. The 38.2% Fib is at the 1.0907 level, then the 50% Fib is at 1.0927 near the channel top and 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. The gap between the indicators is widening to indicate strengthening bearish momentum.

A larger correction could reach the 61.8% Fib near the 1.0950 minor psychological mark, but a break above this could signal that a reversal from the downtrend is taking place.

Stochastic is moving up to reflect upside pressure, but the oscillator is already closing in on the overbought zone to indicate exhaustion. Turning lower would mean that sellers are starting to take over, so EURUSD could resume the slide back to the swing low around 1.0842 or lower.

RSI has more room to climb before reaching the overbought zone, so buyers could stay in control for much longer.

The US dollar seems to be enjoying some support from news that another round of debt ceiling talks is scheduled for Tuesday. However, the lack of any progress could still mean downside for the currency since this would add to the other risks facing the US economy.

Meanwhile, the US Empire State manufacturing index due later today could also add volatility for EURUSD, as a return to negative territory is eyed. Weaker than expected results could mean more losses for the dollar.