Entering Dollar Doldrums

The USD is becoming a two-way trade again.

Most on the Street currently sit at opposite ends of the spectrum regarding the US Dollar outlook. Binary forecasts for EUR/USD reflect this, with evolving Iran war implications seemingly pointing to a clear direction one way or the other for the coming months.

However, we sit in the middle, and expect the greenback to enter a consolidation phase in the coming months, with competing forces largely netting out most of the tail risks of a sharp move either way.

Granted, there’s a large disclaimer when discussing price action right now, given the ongoing conflict/ceasefire/agreement/lack of… but let’s spell things out as we see it.