USD to Go Sideways?

Over the last week or so, it appears that the US dollar is going to struggle with breaking through multiple barriers. This can be seen in the EUR/USD, NZD/USD, AUD/USD, and GBP/USD pairs. In other words, this is a situation where, although the USD remains strong, it will continue to see a lot of the “bottom of the range action.”

What I mean by this is that the UD Dollar finds itself at several crucial levels at the same time. The 1.05 region has been important support for the euro over the last 1.5 years or so, while the Aussie sees a lot of support in the 0.65 area. The British pound has been fighting to go higher since testing the 1.25 area, and as a result, I think the bounce on Friday made a bit of sense in these pairs, but I would also point out that those currencies didn’t exactly close strong.

Considering that the areas are all important and being tested at the same time, I suspect that this is a market that is ready to consolidate overall as far as the US dollar is concerned. This also tracks with the idea that as the holidays approach, more and more traders will be willing to take profit and call it a year after a massive run-up in the value of the greenback.