The factors as I see them are:
- The EUR has definitely taken over first place from the USD in the big ugly contest
- The SNB are defending 1.20 in EUR/CHF, thereby driving USD/CHF higher
- Big macro shorts in USD/CHF are starting to cover
- Risk aversion is causing some massive asset flows out of Asia, driving USD/Asia higher
- Same risk aversion is leading to long-liquidation in AUD/USD
Apart from the first, which is sentiment based, the others are real factors driving real flows. I don’t think much of this is likely to change in coming weeks and buying dips in the USD in your preferred currency pair looks like a sensible move. If cable support at 1.5700 breaks, then that will give USD-bulls even more momentum.
(Edit: I should of course add that much will depend on the FOMC later this week)