Dollar Slumps as Traders Bet on Less Hawkish Fed

The US dollar is experiencing renewed pressure as it begins the new week, continuing its decline from Friday. Despite oil prices remaining in the $80s and Treasury yields being somewhat sticky, the dollar's drop can be attributed to the Fed.

The EUR/USD daily chart shows the pair moving back above the 100-day moving average after a failed attempt to break it on Friday. Buyers are now showing renewed vigor as they test the 50.0 Fib retracement level of the swing lower from April to June at 1.1586.

If buyers can hold above this key technical point, it will establish a stronger upside bias for the pair in the coming days. The 200-day moving average is currently at 1.1627, and with little else distracting traders this week, there may be some technical breathing room to the upside.