The American dollar ended the day mixed

EUR/USD

The American dollar ended the day mixed, as investors continued digesting the dismal US job's report, while struggling with a US holiday that maintained intraday volume reduced all across the forex board.  The soft tone of the latest US jobs' report weighed on the greenback that lost some ground during the same half of the day, although the common currency failed to attract investors, with the EUR/USD pair being unable to surpass the 1.1200 level once again. Data coming from Europe was mixed, as the final August PMIs showed that German growth slowed, dragging the EU's rate of growth to a 19-month low. The final Markit Composite for Germany was of 53.3, as the Services sector came in at 51.7 against initial estimates of 53.3. The EU final composite number printed 52.9. Nevertheless, retail sales in the whole region increased by 1.1% in July when compared to June, and by 2.9% compared to a year before, against a downwardly revised to -0.1%. 

The EUR/USD pair fell down to 1.1138 as the greenback recovered some ground after London's close, but settled a handful of pips below Friday's close, looking increasingly bearish in the short term, as in the 4 hours chart, the price is currently developing below all of its moving averages with the 20 and 200 SMAs converging around 1.1170, whilst the 100 SMA stands far above the current level. In the same chart, the Momentum indicator heads south within negative territory, while the RSI indicator hovers below its mid-line, with no clear directional strength. Furthermore, the price retreated from the 23.6% retracement of its latest slump, at 1.1180 and the immediate resistance, after testing the 50% retracement on a brief spike last Friday. An extension below 1.1120, should confirm additional declines, with the market then eyeing the 1.1000/40 region for this Tuesday. 

Support levels: 1.1120 1.1080 1.1040

Resistance levels: 1.1180 1.1210 1.1250 

USD/JPY

The USD/JPY pair eased down to 103.14 at the beginning of the day, as BOJ's Governor Kuroda in a speech entitled the Comprehensive Assessment of monetary policy, outlined the negative impact of cutting interest rates below zero. Despite he also remarked that the Central Bank is willing to proceed anyway, speculation over further rate cuts eased, helping lift the yen.  The BOJ will have its economic policy meeting next September 21st, while the US Federal Reserve will meet on September 16-17th. The short term picture suggests that the pair has entered in a consolidative stage, as the price is holding above the 103.00 mark. In the 1 hour chart, the price is hovering around a bullish 100 SMA, while the Momentum indicator aims higher below the 100 level, whilst the RSI heads nowhere around 44, with the upside now looking limited. In the 4 hours chart, indicators are hovering around their mid-lines, while the price remains well above the 100 and 200 SMAs. 

Support levels: 103.05 102.70 102.25

Resistance levels: 103.60 104.00 104.40  

GBP/USD

The GBP/USD pair surged to its highest since mid July, reaching 1.3375 after the release of the August Markit services PMI for the UK, showing that the sector bounced from 47.4 in July to post a healthy 52.9. UK data surprised to the upside after the initial post-Brexit contraction, as economic growth has been bolstered by a cheaper currency, supporting Pound's ongoing recovery. The pair retreated from the mentioned high to settle around the 1.3300 level, once again unable to rally beyond a critical long term resistance, 1.3320 the 23.6% retracement of the post-Brexit slide.  Modestly up daily basis, the 1 hour chart shows that the price is hovering around its 20 SMA, while the technical indicators are stuck within neutral readings, with no clear directional strength. In the 4 hours chart, the Momentum indicator has retreated from overbought territory and is now around its mid-line, although the RSI indicator aims higher around 6, while the 20 SMA maintains a sharp bullish slope below the current level, all of which indicates that the risk remains towards the upside, particularly on renewed buying interest above the mentioned Fibonacci resistance. 

Support levels: 1.3265 1.3230 1.3180

Resistance levels: 1.3320 1.3370 1.3415 

AUD/USD

The AUD/USD pair closed the day modestly higher, but was unable to hold on to gains above the critical 0.7600 level, despite an early spike beyond it on dollar's early weakness. The Aussie found some support on better-than-expected Chinese data, as the Caixin Services PMI for August, beat expectations of 51.9, printing 52.1. Also, Friday's recovery in commodities and stocks extended during the first half of the day, supporting the antipodean currencies. During the upcoming Asian session, the RBA will have its economic policy meeting, largely expected to keep rates at 1.5%. If that is the case, attention will turn to the bank's statement, the last with Governor Glenn Stevens, as incoming RBA Governor Philip Lowe is due to take office on September 18th. The technical picture for the AUD/USD pair in the short term favors the downside, as in the 1 hour chart, the price is now below its 20 SMA, whilst indicators head south around their mid-lines, with limited downward strength amid the reduce intraday volume. In the 4 hours chart, however, the price is hovering around its 200 EMA, while the 20 SMA heads strongly higher below the current level, as indicators turned flat between positive territory. The downside potential seems limited at this point, as it would take a break below 0.7490 to confirm a steeper decline during the upcoming sessions. 

Support levels: 0.7535 0.7490 0.7450 

Resistance levels: 0.7600 0.7645 0.7690

Dow Jones

Wall Street remained closed this Monday due to US Labor Day, although futures saw some intraday slides. The DJIA recovered from a daily low of 18,473, to settle around 18,497, a couple of points above Friday's official close. On Tuesday, attention will center in the US non-manufacturing PMIs, which may set the tone for local shares, and a poor reading will likely result in a downward move in local shares. From a technical point of view, the index has made no progress from previous update, given that intraday trading was quite limited. According to the daily chart, the upward potential is still limited, as it stands below its 20 SMA, whilst  the technical indicators have turned horizontal within negative territory, indicating that the upside remains limited. In the 4 hours chart, the 20 SMA maintains its bullish strength below the current level, whilst indicators head north within positive territory. Nevertheless, and considering that the index is below 18,525, a Fibonacci resistance, there's limited scope for additional gains at this point. The daily 20 DMA on the other hand, stands a few points below it, reinforcing the strength of the static resistance, and the level to surpass so offer a more constructive outlook.  

Support levels: 18,465 18,409 18,363

Resistance levels: 18,525 18,570 18,638

FTSE 100

The FTSE 100 closed the day at 6,879.42, down by 15 points or 0.22%, hit by Deutsche Bank downgrade of Royal Bank of Scotland and Lloyds´ shares. The first closed 3.52% lower, while the second shed 2.13%. Further weighing on the Footsie was another positive macroeconomic figure coming from the UK, which dampened expectations of more easing coming from the BOE in the nearest term. The benchmark remained in consolidation mode after the close due to Wall Street's close, and the daily chart shows that the benchmark is holding above its 20 SMA, while indicators turned modestly lower, lacking clear directional strength. In the 4 hours chart, the index presents a neutral-to-bullish stance, as indicators turned horizontal within positive territory, while the index is holding well above its 20 and 100 SMAs, both converging around 6,825. At this point, a recovery above 7,000 is required to see the index regaining its bullish momentum, whilst a break below the mentioned 6,825 will likely signal a steeper decline for the upcoming days. 

Support levels: 6,860 6,820 6,754

Resistance levels: 6,931 6,968 7,000 

DAX

Following a solid start for the day, European equities trimmed most of their daily gains, with the German DAX ending the day 11 points lower at 10,672.22, dragged lower by the downward review of August PMI figures.  German's economic growth slowed in the month, with the services sector's activity rising at its weakest pace in more than a year. Banks suffered the most, with Commerzbank shedding 1.50% and Deutsche Bank closing 0.49% lower,  on speculation the ECB will loosen its economic policy further this week. As for the technical outlook, the daily chart shows that the benchmark holds above a bullish 20 SMA, but also that technical indicators lack directional strength an remain stuck within their mid-lines. In the 4 hours chart, the index is holding above its moving averages, the Momentum indicator heads nowhere around its mid-line, while the RSI retreats within positive territory, currently around 58. 

Support levels: 10,675 10,626 10,560

Resistance levels: 10,728 10,766 10,807 

Nikkei

The Nikkei 225 advanced 112 points this Monday, closing the day at 17,037.63, mostly supported by Friday's rally in Wall Street, and yen's weakness. The index,  however retreated in after-hours trading as the local  currency regained some ground during the past London session, with the USD/JPY pair back near ¥103.00. Barely holding above the 17,000 level, the daily chart shows that the benchmark remains above all of its moving average, but with only the 20 SMA heading higher. In the same chart, the Momentum indicator aims modestly higher above its 100 level, while the RSI indicator retreats from near overbought territory, all of which limits chances of further advances, moreover as Wall Street's futures edged lower. In the 4 hours chart, technical indicators have turned flat above their mid-lines after correcting overbought readings, whilst the 20 SMA heads north below the current level, offering an immediate support at 16,965.

Support levels: 16,965 16,915 16,860 

Resistance levels: 17,083 17,153 17,212 

Gold

Gold prices held to their latest gains, with spot ending the day modestly higher at $1326.65 a troy ounce. With activity reduced due to an US holiday, the commodity was unable to attract buyers, although the dismal US employment report favors some additional gains in the bright metal, as chances of a US rate hike have reduced dramatically over these last few days. Still, a sharper rally is also out of the question, given that the market believes that the FED will provide one rate hike before the year end. From a technical point of view, the daily chart shows that the price remains  below a modestly bearish 20 SMA, and below the 1,333/5 region, a major static resistance area, while indicators aim modestly higher, but still below their mid-lines. In the 4 hours chart, the 20 SMA heads north below the current level, but the price remains below the 100 and 200 SMAs, in the mentioned price zone, while the Momentum indicator is actually retreating from near overbought readings and the RSI indicator consolidates around 63, giving not much clues on what's next for the metal. 

Support levels: 1,316.40 1,302,50 1,288.10 

Resistance levels: 1,328.60 1,335.60 1,342.50 

WTI Crude Oil

Crude oil prices jumped early Europe, after Saudi Arabia made a joint statement at the ongoing G-20 summit in China, calling for cooperation to stabilize crude oil prices, although no specific measure was announced, beyond the fact that both countries will form a working group to monitor the market and draft recommendations to producer nations. West Texas Intermediate crude oil futures jumped to $46.52 a barrel, but price pulled back after the Saudi Energy Minister, Khalid Al-Falih said afterwards that there is no need to limit oil output. WTI closed the day a few cents above 45.00, and with the daily chart showing that the price remains below the 38.2% retracement of its latest bullish run, whilst retreating from the 20 and 100 DMAs, both converging around the mentioned high. In the same chart, technical indicators have bounced modestly within negative territory, limiting the risk of a stronger decline, but not enough to support an upward continuation rally. In the 4 hours chart, technical indicators maintain their sharp bullish slops within positive territory, but the price also retreated from its 100 SMA, also indicating that the risk towards the downside is limited. 

Support levels: 44.30 43.70 43.20 

Resistance levels: 45.65 46.50 47.20