Dollar Index drops to 50-DMA as Trump is still in “campaign mode”

The Dollar Index (DXY) dropped to 50-DMA support of 101.23 as Trump outlined policy plans, but did not shed light on the details, thus making the speech sound more like a Presidential campaign speech. 

High on rhetoric

Everything that Trump has talked so far - from immigration, fiscal spending, job growth and repealing Obamacare - offers nothing new that would boost market’s appetite for the US dollars. 

The bar of expectations has been set very high and it is essential that Trump offers policy details in the remaining part of the speech. 

Dollar Index Technical Levels

The index was last seen trading around 101.30 levels. A break below 101.23 (50-DMA) would expose the psychological figure of 101.00, under which the losses could be extended to 100.78 (previous day’s low). On the higher side, violation of resistance at 101.57 (session low) could yield a revisit to 101.76 (Feb 15 high) and 102.00 (zero figure) levels.