DXY based above 21-D SMA and on 93 handle

• DXY: geopolitical risks contained in the main, although Iran nuclear deal axed, could spell trouble ahead.
• DXY: mixed trade in the dollar today as Fed underpins upside.

The US dollar picked up a very modest bid onto the 93 handle in recent trade as risk wobbles after Trump's announcement to pull out of the nuclear deal with Iran, intending to impose economic sanctions. The DXY is trading at the upper end of today's 92.6540-93.2800 range, currently at 93.0990.

Trump on Joint Comprehensive Plan of Action: We will withdraw from deal

As widely expected, Trump has sparked up geopolitical risk on the back of his distaste for Iran, calling out many of its flaws as a regime intent in creating widespread terror in the Middle East, saying, the regime is defective at the core and announced its withdrawal from the Joint Comprehensive Plan of Action, sending gold and the yen higher, (AUD/JPY lower). 

The dollar, however, is mixed, with an initial bid post the announcements but tailing off at the time of writing, moving into a sideways drift as markets weigh up the positives in the US and N.Korea moving into talks with Pompeo en-route to North Korea to prepare for the upcoming summit. Also, China and the US trade talks will continue next week in Washington. 

Eyes stay on Fed

For the time being, the focus turns back to the Fed. Earlier today, the greenback caught a bid on the back of a hawkish Fed's Chairman Powell, warning that some investors may not be well positioned for anticipated US interest rate hikes, triggering US Dollar appreciation.

DXY levels

The DXY's chart simplified has a wide resistance at 93.30 guarding 93.93 and support comes in at 92.94, (21-D SMA) and 92.75. 91.80 arrives thereafter on the way down and ahead of 91.50 and 90.77.