A week ago we were concerned that the dollar's surge had left it over-extended from a technical perspective and most of the major pairs, but the yen and Canadian dollar were outside their Bollinger Bands. We cautioned against chasing it, but the dollar's surge continued. It peaked in the middle of the week and stalled. We look for a consolidative/corrective phase in the coming days that will entail a weaker dollar. The Dollar Index lost a bit more than 0.5% ahead of the weekend, its largest loss in almost a month, and snapped a three-week advance with a 0.25% loss.. The technical indicators warn of downside risk. ... (full story)