T he rally in the U.S. dollar is expected to go on for some time, despite possible short-term corrections which means that companies that have international exposure and that price in local currencies could face sustained headwinds.

In a report this week, Morgan Stanley figures that the U.S. dollar’s rally is only halfway through a bullish cycle one that it says is the third major U.S. dollar bull market in the last four decades.

A team of global-currency researchers at Morgan Stanley sees as much as 20% upside in the U.S. dollar over the next three years.

The team looked at how a stronger dollar would affect a typical company reporting in U.S. dollars one that derives 65% of revenue from the Americas, 25% from Europe and surrounding regions, and 10% from Asia Pacific.

Their conclusion? If current exchange rates hold steady for the rest of 2015, such a typical company would see revenue hits of more than 6% in each of the first three quarters and 3.4% in Q4. But if Morgan Stanley’s own more bullish forecast bears out, they would face additional headwinds of up to 3%.

Morgan Stanley looked at the impact of foreign exchange on software companies in particular, since they have significant international exposure.

It wasn’t all bad news. they found. Several companies have effective currency hedging policies or price almost exclusively in U.S. dollars, which provide some buffers.

Morgan Stanley favors security firm Palo Alto Networks (NYSE:PANW ), analytic software outfit Tableau Software (NYSE:DATA ), enterprise cloud company Workday (NYSE:WDAY ) and customer-service software firm Zendesk (NYSE:ZEN ) because they price mostly or all in U.S. dollars.

IBD gives software companies Palo Alto Networks and Tableau Software near-perfect Composite Ratings: 98 out of a possible 99.

On the other hand, companies that price locally, have a large global exposure and no hedge for currency impact will likely see the greatest negative impact to revenue this year, the Morgan Stanley analysts noted.

In that sinking boat, they singled out software companies Qlik Technologies (NASDAQ:QLIK ), VMware (NYSE:VMW ), Oracle (NYSE:ORCL ) and Symantec (NASDAQ:SYMC ).

But expenses in foreign markets with weaker local currencies can somewhat protect earnings, if not revenue, the analysts noted. Workday, Palo Alto Networks, Check Point Software (NASDAQ:CHKP ), Citrix Systems (NASDAQ:CTXS ), FireEye (NASDAQ:FEYE ) and Splunk (NASDAQ:SPLK ) may actually see expense benefits from the lower U.S. dollar cost of overseas operations.

Oracle may also have a natural hedge on the bottom line, they noted. Oracle’s Composite Rating is a relatively strong 81. Splunk’s is 82, and Check Point is ranked 91.

Analyzing fourth-quarter reports so far, Morgan Stanley said that companies pricing in U.S. dollars have seen much higher upward revisions to revenue estimates than those pricing in local currencies.

However, next-day stock performance has actually been better for local currency pricers vs. U.S. dollar pricers on average, suggesting investors may be already pricing in these negative FX impacts.

That said, the average stock performance since has been modestly better for firms pricing in U.S. dollars, the analysts noted.