The above chart is for the US dollar. The dollar has faced significant downward pressure since early February. But it has been stabilizing just above the blue line for the past few days.
As the global economy slows down due to higher inflation and higher borrowing costs, the growth rate of the emerging countries would slow down. Many say the emerging countries have decoupled from the US but in my opinion this would take a long time, probably 7-10 years. Over the next few months, the weakening of global economy should help the dollar as flight to safety should begin. In other words, people would move money out of emerging unstable markets to the developed stable markets like US and Europe. Add to it the 'Short dollar and long Euro' camp has been overcrowded. The Eurozone has not yet started cutting interest rates. Once they begin cutting rates like UK, the money should start flowing out of Euro.
So, in totality, I am expecting the dollar to start bouncing back in the next few weeks/ months. A significant change in direction won't happen unless the dollar breaks out of the top blue trendline. The same applies for the downward break. Till then we will be bouncing back and forth in this channel.
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