Being long or short on the dollar vs the Euro/Yen may prove moot. Gold is near record highs unless you factor in the value difference from the late 80's. This to consider: We no longer have the ag. capacity to feed ourselves. If you are old enough, you already know from the 70's period that we cannot fuel this beast. This economy has been purely consumer driven for the past 5 years. If the Fed cuts again they may be encouraging inflation as it would tend to create more disparity between other currencies and push up import prices. Due to the myriad of problems with the domestic economy the ever spending consumer is being hard pressed.
What happens if they stop spending?

It could work for a time. The dollar surprised everyone not long ago when it rallied- even cutting into some of Warren Buffett's profits from his bet against the greenback. Longer term though, the dollar is headed lower and gold should resume its uptrend at some point--some correction in gold is natural after its good move. While strong moves sometimes signal changing trends, there hasn't been any corresponding fundamental change that accounts for recent moves other than the dollar weakness and gold strength getting overdone especially since the Fed may decide not to cut rates at its next meeting-- I think the markets are factoring in that possibility which it had brushed aside before. That is a short term consideration though as the longer term factors involved in the dollar weakness and gold's strength are still in play (strong oil, high debt, imbalance of trade). There was a good item on this in today's Wall Street Journal. Also there are many items on gold in the Gold Channel at http://www.Barreloworld.com. Marc Faber's views on the dollar's weakness are also worth looking at there in the Marc Faber Channel.