Quote from Pabst:
The dollar's rally the past two months was precipitated by the ananticipation of a less accomodative Fed. Tightings have been priced in. Hence the 10% correction in the Euro. Now it's back to a matter of cross rates. IMO the Bund's reluctancy to break in earnest (the Bund hasn't even taken out it's February lows might keep a lid on renewed Euro strength. I see the dollar range bound here from 118-123.
I agree the dollar will not make new lows for quite some time.. but it will take a long time for it to stage any type of serious rally... we very well can get 3-6 months of back and fill.