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).