Current level is at year high. However, I think this rally of USDollar is unusual. The fact is although USDollar contacted year high, major currency pairs haven't tested their lowest or highest levels this year : EURUSD , NZDUSD , USDJPY , AUDUSD , GBPUSD , USDCAD . But I have one point.
Look at on the chart I mark two vertical arrows indicate recent two strongest rallies of USDollar in this year.
These two strongest rallies have a similar point: Both move too far from Kumo cloud with the same distance.
I fear USDollar could face a large bounce.
However, I hope my view is wrong because incoming data could support USDollar to break the YEAR HIGH.
ECB Meeting and Payrolls are two important piece of data this week.
If ECB cut rate and extend , plus strong payrolls, USDollar easily breaks the year high and move higher.
If ECB postpone to take action and payrolls is negative, USDollar definitely contracts agressively.
I think USDollar is enough momentum to break the year high.