USD Rally: Bull Pausing or Bear Reawakening?

My last post in November 2011 on the USD pointed out the reversal taking place in the USD and pointed to short term targets of 79.50 and 82.00 on the USD Index.   Those levels have effectively been reached and the Dollar is pulling back to the level of the breakout above 79.50.  The next level to break is the 82 level with the subsequent target being 87.  A retracement to 75+ is possible.  A break below 73 would indicate that the Fed has abandoned the currency and a complete loss of confidence in the USD monetary system.  These are possible and explain why owning some precious metals is intelligent, but I believe that is the longer term concern.  Right now, the currency markets seem to be turning in favor of the USD.  Currency trends tend to last for years. So.... if this trend last for 5-7 years like other trends and the uptrend in the dollar is 0-3 years old, we should expect another 3-5 years of relative USD strength.  The long term support for the USD is 73.  Long term resistance is 118.  This should provide a good risk/reward ratio.  The best part of this strategy is that for it to be successful, it requires US citizens to basically do nothing.  (This is not quite true and the next post will delve into tactics for taking advantage of USD strength).