Dollar Index clocks four-day high in Asia, focus on Trump-Kim Summit


  • Dollar index clocks four-day high as markets price-in a positive Trump-Kim nuclear Summit. 
  • Divergent understandings of the term denuclearization could complicate negotiations. 

The dollar index (DXY), which tracks the value of the greenback against major currencies, rose to a four-day high of 93.89 in Asia as markets braced for a positive Trump-Kim Summitt.

The dollar seems to have picked up a bid after the US President Trump said the historic nuclear summit with North Korean leader Kim Jong Un in Singapore could "work out very nicely. Both leaders

The bid tone around the greenback will likely strengthen further if the meeting produces something worthwhile. However, experts fear the divergent understandings of the term denuclearization could complicate matters.

That said, the bar of expectations is low, given the past failures and hence meeting market expectations will likely not be a tough task for the two leaders.

Dollar Index Technical Levels

As of writing, the DXY is trading at $93.80. The 5-day and 10-day moving average are trending south, indicating a bearish setup. A break below 93.21 (June 7 low) would signal the corrective rally has ended and the pullback from the May 29 high of 95.02 has resumed.

Resistance: 93.915 (4H 100-MA), 94.32 (June 5 high resistance on 4H chart), 95.02 (recent high).

Support: 93.66 (23.6% Fib R of Apr-May rally), 93.21 (June  7 low), 92.81 (38.2% Fib R of Apr-May rally).

  TREND INDEX OB/OS INDEX VOLATILY INDEX
15M Bullish Neutral High
1H Bullish Neutral Expanding
4H Bearish Neutral Low
1D Bearish Neutral Low
1W Bearish Neutral Expanding

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures