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.