Major global currencies, including the dollar, euro, sterling, and yen, were steady on Monday as investors anticipated further declines in the dollar following the Federal Reserve's less hawkish stance. The dollar index slipped and hit a six-week low after declining more than 1% last week. Weaker U.S. jobs data, softer manufacturing numbers, and a decline in Treasury yields also contributed to the dollar's weakness, while some analysts expect the dollar to remain on a weaker trend, others caution that USD - supportive factors could eventually re-emerge. Additionally, signs of improvement in the eurozone, China, and other regions are necessary for a sustained dollar selloff. Treasury yields dropped last week, and futures markets imply a high probability that the Fed is done hiking rates at least for 2023.
On the technical side the price is trading near a major resistance area of $1.075 which consists of the 38.2% of the weekly Fibonacci retracement level, the 100 day moving average as well as the psychological resistance of the round number. At the same time the Stochastic oscillator is in the extreme overbought levels possibly indicating that a correction to the downside might be imminent. If these factors prove to have a significant effect on the price and manage to push it down in the coming sessions then the first area of major technical support might be found around the $1.06 price area which is made up of the psychological support of the round number, the cross of the 20 and 50 day moving averages as well as the 23.6% of the weekly Fibonacci retracement level.