• EURUSD could be on the verge of a downside correction, but only time will tell.
• Bears will await the Asian highs and lows and a set up for the day ahead. 

The US Dollar gained against the euro on Monday but has been unable to take off as investors are still in two minds about whether there is going to be a slower pace of Federal Reserve interest rate hikes going forward. 

The US Dollar got a boost when Christopher Waller crossed the wires and said Friday's inflation report was "just one data point," and that markets are "way out in front". This has been the theme that is gathering pace in the opening sessions. 

DXY daily chart

The daily chart in the US Dollar is showing signs of a corrective nature which opens risk for the downside in the euro as follows: 

EURUSD H1 chart

Bears will be reluctant to make their move in the face of caution around the Fed sentiment, but the resistance is compelling for a move to the downside on the hourly chart. The price needs to form a topping formation below the trendline, with a break of structure, 1.0320. 

EURUSD daily chart

Correction in the making? 

EURUSD weekly chart

The price is on the front side of the major trend but the back side of the recent trend and this leaves the focus on a move towards 1.0500 following a correction that could be imminent.