This is where I differ. Yes, I agree that the dollar will take a pause here, perhaps a prolonged pause given the intensity of the preceding move. But in my opinion, the dollar is coiling as it prepares for its next move higher. Take a look at the weekly chart of the USD ETF: UUP and see if you agree.
Now look at the action over the last four weeks. Sure doesn't look like a topping pattern to me. The recent correction has been minimal and volume has been average at best. In fact, the dollar looks like it's coiling into a pennant formation getting ready for the next move higher.
From Investopedia: "While the construct of the pause in the trend is different for the flag and pennant, the attributes of the chart patterns themselves are similar. It is vital that the price movement prior to the flag or pennant be a strong, sharp move.
Typically, these patterns take less time to form during downtrends than in uptrends. In terms of pattern length, they are generally short-term patterns lasting one to three weeks, but can be formed over longer periods"
The dollar chart above seems to fit the bill. It has all the makings of a continuation pattern as opposed to a reversal pattern. If I'm correct, and the dollar breaks higher, then the measured move puts it at 110 (or 29.00 for the UUP). As the worldwide reserve currency, there are all sorts of negative repercussions for a dollar this strong. I won't get into those details here, but I will leave you with this clip of Raoul Paul giving his take on what this would mean. Fast forward to the 4:45 mark - this is where he starts his discussion on the US Dollar.