Don't doubt the dollar, CNBC survey says

Don't bet against the dollar just yet.

That's the message from a new CNBC survey of top Wall Street strategists.

Strategists on average see the dollar strengthening to 1.064 per euro by June and 1.024 by the end of the year. By the end of 2016, they forecast, the euro will rise back to 1.0320. Similarly, strategists expect the dollar to strengthen against the Japanese yen to 121.43 by June, 124.64 by the end of 2015 and even further to 127.08 by the end of next year.

More than 70 percent of respondents have a negative near-term outlook on emerging markets currencies; 21 percent are somewhat positive and none is extremely positive.

But the dollar has been going the other way for weeks, weakening to a three-month low against other major currencies. Even hated emerging markets currencies like Russia's ruble have gained 26 percent in two months. After plunging to 1.04 in March, the euro has shot back to just under 1.14.

U.S. Dollars
Bay Ismoyo | AFP | Getty Images

"It is a respite only, and these other currencies, notably the euro, are enjoying a classic countertrend rally," said David Rosenberg, chief economist and strategist at Gluskin Sheff. ( Tweet This )

The key is to look at the dollar move in the context of a longer-term trend—which shows the dollar is still 17 percent stronger than it was a year ago and is coming off of one of the most intense dollar rallies in history.

Read MoreEuro jumps past $1.14 as US economic worries grow

"At the April highs, the trade-weighted dollar was up 20 percent from last year—that's happened only three other times since the gold window closed in the early '70s—so the dollar got overextended and is now merely correcting that overbought technical condition," Rosenberg said.

Still, the recent correction has toned down some of the extreme bullish dollar enthusiasm. Only half of those surveyed expect the euro to fall to parity against the dollar this year.

"I think it had become pretty silly," said Jim O'Neill, former chief economist at Goldman Sachs and longtime forex watcher, referring to the overwhelmingly bullish dollar sentiment over the past year.

Read More57% of investors expect a correction soon: Poll

The "massive positioning, consensus, and the actual rationale for the view since early this year has been wrong," he added. O'Neill's forecast for the euro-dollar is 1.05 -1.17 "as far as I can see for quite some time."

April's retail sales report was the latest in a string of disappointing economic data releases, indicating a rebound from a weak first quarter might prove elusive.

"What we learned is that U.S. isn't ready for a super strong dollar. That's what the data is telling you," said David Zervos, chief market strategist at Jefferies.

Zervos blames weaker economic data in the U.S. on central banks "exporting tighter [monetary] policy" for the U.S. in the form of a strong dollar by loosening monetary policy with quantitative easing and lower interest rates.

"Central banks tightened in the first quarter. The economy showed what happened," Zervos added.

Still, he predicts the dollar will strengthen in the long term, for at least the next year, fueled by powerful quantitative easing in Europe, despite better economic data there. He also expects the Federal Reserve will continue to warn the markets it's preparing to raise interest rates and eventually will follow through by the end of 2015.

Even if the dollar does resume its rally in the long term, it could be a bumpy ride. Half of the strategists surveyed by CNBC expect the currency market to remain as volatile as it's been this year, and 30 percent expect the wild swings to pick up.

Buckle up: If strategists are right, the dollar is in for a long-term run, even if it takes some further correcting and comes with some bumps along the way.

The online survey results represent the opinions of 14 of the world's top currency analysts and strategists who responded to CNBC's invitation to participate. Their responses were compiled on May 4-6