Frankly I am not sure how the actions in Europe are bullish for the Euro currency but I assume some of the move today is simply shorts being squeezed. That said, I've been long US dollars as my main shorting strategy the past 3 months since regular shorts have been destroyed except for the past week and a half. It's worked out nicely as a hedge since for much of this rally in US equities, the dollar went up in kind.
The dollar chart is still very bullish but most likely extended and the can has been kicked down the road for now. I will be taking down my position by 45% in Powershares DB US Dollar Bullish (UUP) ETF which effectively lowers my short exposure, here in the mid $24s. But with Frankenstein currencies now in all major G7 markets* (who knew South American currency would be amongst the least banana republic-ish!) it's pick your poison. Since the end game for the U.S. will be the last in the coming decade, I expect the dollar to continue to gain fans as the least ugly black sheep, so I'll place a limit purchase down in the $23s and see if hits in the weeks to come. (obviously this is not 'fast money'). If I don't get that price, oh well, more money to buy stocks for risk free return.
Long Powershares DB US Dollar Bullish in fund; no personal position