EURUSD has been moving inside a tight range visible on its short-term time frames, and it looks like another test of resistance is due. Price could make another bounce off the 1.0250 minor psychological mark.

If so, EURUSD could make its way back down to the range support around 1.0115. Technical indicators are hinting that the path of least resistance is to the downside or that the top of the range is likely to keep gains in check.

The 100 SMA is below the 200 SMA to signal that bearish pressure is in play, but the pair has already climbed above both indicators as an early bullish signal. In addition, both moving averages could hold as dynamic support on dips to the 1.0200 handle.

Stochastic is turning lower after a brief stay in the overbought area, suggesting that bearish pressure is picking up. RSI, on the other hand, is moving sideways, to reflect rangebound conditions.

EURUSD could take its cues from top-tier US data this week, including the NFP release on Friday. Another slower pace of hiring is eyed, possibly leading traders to doubt that the Fed can carry on with its aggressive tightening cycle.

Still, keep in mind that inflation is running pretty high in the US while growth has slowed. The advance GDP report for Q2 reflected another contraction in economic activity, placing the US in a technical recession.

The NFP release should have more hints on whether or not the US economy is in for more weakness in the coming months. A weaker than expected read compared to the 250K consensus might mean more downside for the dollar while a higher increase could encourage dollar bulls to charge.

Meanwhile there are no major reports due from the eurozone economy, so the shared currency might simply function as a counter currency.