EURUSD started the week in a quiet mood, making limited moves within the 1.0800 zone as the momentum indicators continue to lack bullish appetite.
The RSI has been unable to climb forcefully above its 50 neutral mark for more than a week, the MACD has been moving sideways, while the Stochastics are heading towards their 20 oversold area, all reducing the odds for an important upside correction.
For the bears to take control in the near-term, the 61.8% Fibonacci of the upleg from 1.0635 to 1.1145 at 1.0830 need to collapse, opening the way towards the 1.0767 support area. Failure to hold above the latter, could see the retest of the descending trendline stretched from the 1.1238 swing high currently around 1.0700. In case this trendline proves easy to go through, the next target will be the 3-year low of 1.0635.
Alternatively, a close above the 50% Fibonacci of 1.0890 could add some upside pressure towards the 1.0950-1.0989 resistance region. Slightly higher, the 23.6% Fibonacci of 1.1025 and the 200-day simple moving average (SMA) may attract some interest before all eyes turn to the descending trendline drawn from the 1.1411 high.
In terms of trend, to get back to a positive path the pair needs to rally above 1.1495, while a drop below 1.0635 would resume negative direction.
Summarizing, EURUSD is expected to stay muted in the short-term unless it manages to breach resistance around 1.0890 or support at 1.0830.
