I believe the U.S. Dollar rally started in late November following a better-than-expected job report has legs despite recent weakness. The Dollar index (DXY) last peaked at 88.70 on June 7th and corrected by nearly 60% to 80.09 in two months. Technically, the index was able to hold the uptrend at 80.04 (previous major low), and has since broken out of the downtrend. Therefore, I would be very cautious about shorting the greenback in the near term and would be looking for opportunities to long the dollar against the usual suspects (Euro, British Pound, and commodity currencies), but would leave the USD/JPY and USD/CHF alone as the JPY and CHF have remained strong given their safe-haven status.
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