USD: Creating Head-And-Shoulders Topping Pattern?

Below looks at two long-term USD charts. Could King Dollar be creating a topping pattern?

We shared in March of last year the chart below, which shows that when the US dollar has been very strong (up 12% or more in 12 months), it often cooled off. Many times it was closer to a high than a low.

US Dollar Reversal Pattern

18 Months ago we shared that after the US dollar had rallied strongly in the prior twelve months, it usually backed off. At the time of the post, King Dollar was screaming higher, trading near the 100 level. 18 months later, what has King Dollar done? Not much.

Below looks at an update on the US dollar on a monthly basis:

Monthly USD

As mentioned in the chart above, the US$ could be creating a head & shoulders topping pattern. Let me be clear, this pattern right now has not been proven. Potential is there, jury is still out for sure.

To tell if the pattern read is correct, the US$ needs to break below the neckline at (2). If it would, several commodities could do well.

Keep a close eye on this pattern, as it has taken a little over a year to form.