The dollar fell to new lows against the euro, sterling, the Australian dollar, and the Swedish krona last week. However, it was a head fake and the greenback quickly returned to its previous ranges. The combination of the July FOMC minutes that dampened expectations for new initiatives, such as yield curve control or an increase in asset purchases and disappointing preliminary August PMI readings tempered investor enthusiasm for risk. Since the lower end of the dollar's range was tested, the rule of alternation warns of the risk that the upper-end will be probed. Just like the downside was frayed so can the upside. ... (full story)