With the Dollar index trading above 103, Dollar bulls are in full control as the index is very close to breaking above monthly resistance. This months candle has so far reached as high as 103.90 surpassing the highs of 2016-2017.
The Dollar index is rising in a parabolic pattern. A break out is imminent. Parabolic patterns are very difficult to trade as there are few or none pull backs in bullish trends making it difficult to enter the market and ride the trend. Parabolic patterns are usually followed by very sharp reversals. Traders need to be very cautious. Nevertheless if bulls manage to hold above 103, the Dollar can continue climbing higher. In the short-term a pull back is justified.
