In the last update, I had wished for a breakout of the 109.25 / 110.25 Dollar-Index (DXY) range. Eventually, the Dollar surged sharply. I hope you survived it well or benefited properly and maybe you even had one of the EURUSD straddles in the book. If yes, congratulations. Admittedly, the upside wasn't my favorite scenario, especially against the Yen. But the intervention of the Bank of Japan has helped a little.
The market has embraced the idea of a safe haven Dollar that even pays interest. Of course, this can cause the currency to rise even further. Yesterday the DXY printed a new multi-year high at 114.67 almost exactly 4% above the upper end of the range mentioned above. At least for me there are no technically relevant marks in the short-term above that level. One has to look at the monthly chart to find any relevant resistance on the upside:
(source: fxstreet.com)
At these elevated levels I am not looking for Dollar longs. That might be a mistake, but then I would rather be out of position and miss some opportunities. The long Dollar trade is over crowded. So while the trade is kind of self-sustaining, the exit will be very, very narrow when the big guys decide it's over. But even Dollar bulls shouldn't mind a small correction at this point.
Good luck,
Sebbo