The American dollar lost ground against most of its major rivals during the first half of the day

EUR/USD

The American dollar lost ground against most of its major rivals during the first half of the day, with the EUR/USD pair extending up to 1.1355 in the London session, helped by positive data coming from the Old Continent. The flash Markit PMIs showed that Germany's private sector continued expanded in August, with the manufacturing figure up to 53.6, above expected, but the services sector expanding at  a slower pace, resulting at 53.3 from previous 54.4. For the euro area, the economy grew at a steady pace in the same month, with the Markit Composite PMI up to a seven-month high of 53.3. Later on the day, however, data showed that the EU consumer confidence decreased for a third month in-a-row, plunging to -8.5. 

In the US, New Home Sales unexpectedly rose in July to the highest level in almost nine years, with sales increasing 12.4% to a 654,000 annualized pace. The FX market, however, was unimpressed with the news, as the flash Manufacturing PMI for August came in at 52.1, missing expectations of 52.7 and below July's 52.9.

The EUR/USD pair retreated from the mentioned high during the US afternoon to settle around 1.1320, flat for a second consecutive day. Investors are waiting for the US Jackson Hole Symposium, where FED's head, Janet Yellen, may offer some fresh clues over a timing of the next rate hike in the country. In the meantime, the 4 hours chart shows that the price is stuck around a horizontal 20 SMA, while the technical indicators lack clear directional strength around their mid-lines, failing to anticipate what's next for the pair. Still, and as long as the price holds above 1.1300, the upside is favored, with a break above 1.1365, last week high, required to confirm an extension towards 1.1400 and beyond.

Support levels: 1.1320 1.1285 1.1240

Resistance levels: 1.1365 1.1400 1.1460

USD/JPY

The USD/JPY pair traded as low as 99.93 this Tuesday, with subsequent bounces barely being enough for the pair to recover the 100.00 level. The Japanese yen held to its latest trend, as US Treasuries yields edged higher, with the 10-year benchmark up to 1.55%.  The release of a slightly encouraging  August flash Japan Manufacturing PMI, which came in at 49.6 from 49.3 in July, hardly affected the currency. Neither did news that the  government plans to spend 4.52 trillion yen to fund stimulus measures for the local economy under a second extra budget for fiscal 2016, according to government sources. The pair maintains a neutral stance in the short term, but remains dangerously close to the 100.00 critical support. In the 1 hour chart, the price is developing below a mild bearish 100 SMA, whilst the technical indicators inch higher within neutral territory. In the 4 hours chart, technical indicators are flat around their mid-lines, while the 100 SMA has extended its decline above the current price and currently stands around 101.10. 

Support levels: 99.90 99.55 99.10

Resistance levels: 100.30 100.65 100.95 

GBP/USD

The GBP/USD pair near a daily high set at 1.3209, level last seen on August 4th. The Sterling Pound benefited from early dollar's weakness, and from a recovery in oil prices after Monday's sell-off. There were no first-tier data releases in the UK, but the CBI Industrial Trend Survey for August came in better-than-expected, at -5 versus the -9 forecast. The pair has spent most of the American afternoon consolidating right below the 1.3200 level, but maintains the positive tone near-term, given that in the 1 hour chart, indicators head strongly north near overbought readings, whilst the 20 SMA maintains its bullish slope below the current price, providing a dynamic support around 1.3160. In the 4 hours chart, the price is a few pips below its 200 EMA, but well above the 20 SMA, while the Momentum indicator heads sharply higher within positive territory and the RSI stands around 69, all of which supports further advances, particularly on a break above 1.3220, the immediate resistance. 

Support levels: 1.3160 1.3120 1.3090

Resistance levels: 1.3220 1.3250 1.3290

AUD/USD

The Australian dollar advanced at the beginning of the day, underpinned by NZD gains, this last fueled by comments coming from RBNZ Governor, Graeme Wheeler, who delivered a speech in which outlined reasons on why he doesn't see the need to take an aggressive approach to interest rates. The AUD/USD pair surged up to 0.7654 during European trading hours, as the dollar came under selling pressure, but plummeted to a daily low of 0.7615 mid American afternoon, as  US equities came off their daily highs. According to the 1 hour chart, the risk is towards the downside as the price broke back below its 20 SMA, now flat around 0.7640, while the technical indicators head sharply lower within negative territory. In the 4 hours chart, the price is also below a bearish 20 SMA, while the technical indicators turned south and are currently entering negative territory, supporting a downward extension on a break below 0.7600, a strong Fibonacci support. 

Support levels: 0.7600 0.7570 0.7535

Resistance levels: 0.7640 0.7690 0.7735 

Dow Jones

Wall Street managed to close in positive territory, but major indexes trimmed most of its daily gains. The Dow Jones Industrial average ended the day at 18,547.30, up by 17 points, while the S&P added 4 points, to 2,186.90 after gapping higher to near record highs at the beginning of the session. The Nasdaq Composite, gained 0.30%, to close at 5,260.08. Better-than-expected US housing data backed a rally at the beginning of the day, but gains faded as the day went through, as investors remain cautious ahead of the Jackson Hole Symposium. The DJIA daily chart shows that the benchmark advanced up to 18,638 before retreating, holding above a flat 20 DMA and with technical indicators still lacking directional strength within neutral territory. In the 4 hours chart, the benchmark is currently hovering around a mild bearish 20 SMA, while indicators head modestly lower around their mid-lines, also failing to provide clear clues on what's next. 

Support levels: 18,505 18,464 18,392

Resistance levels: 18,570 18,638 18,672

FTSE 100

The London benchmark, the FTSE 100, closed 40 points higher at 6,868.51, helped by an advance in mining-related equities. Iron-ore producer BHP Billion rose 4.4%, while Anglo American added 4.9%, after an upbeat report on the sector from Jefferies. The benchmark however, erased all of its daily gains after the close, and now trades flat daily basis around 6,859. Technical indicators in the mentioned time frame, maintaining the positive tone seen on previous updates given that the benchmark recovered after falling down to a still bullish 20 SMA, whilst the Momentum and RSI indicators turned modestly higher within positive territory. In the 4 hours chart, the benchmark is around a modestly bearish 20 SMA, while the Momentum indicator remains flat around 100 and the RSI indicator also holds in neutral territory, failing to offer clear clues on what's next for the benchmark.

Support levels: 6,814 6,782 6,739

Resistance levels: 6,893 6,945 6,988

DAX

The German DAX gained 99 points this Tuesday, and closed at 10,592.88, with European stocks posting solid gains amid a rally in bank and mining-related equities. Further supporting equities were the flash August PMIs, showing that the region continued growing at a strong pace at the beginning of the third quarter. Deutsche Bank led gained, up by 2.90%, followed by Commerzbank that closed 2.53% higher. The daily chart presents a modest positive tone, as the price has recovered above a bullish 20 DMA, while the technical indicators aim modestly higher within positive territory, lacking enough strength to confirm a steeper recovery at this point. In the shorter term, and according to the 4 hours chart, the technical stance is neutral with the index developing a few points above a bearish 20 SMA, while the technical indicators remain flat around their mid-lines. 

Support levels: 10,540 10,470 10,425

Resistance levels: 10,659 10,714 10,766 

Nikkei

The Nikkei 225 closed the day at 16,497.36, down by 100 points or 0.61%, undermined by a stronger yen that briefly traded below 100.00 against the greenback during the Asian session, and falling oil prices. Trading was thin as investors are waiting for the US Federal Reserve´s head wording, Janet Yellen, later on the week.  News that the Japanese government is preparing  a supplementary budget to help fund PM Abe's economic stimulus package, failed to motivate investors.  The index gained some ground in electronic trading, as European and American equities edged higher, and trades around 16,540 ahead of the Asian opening. Technically, however, the benchmark maintains the neutral stance seen on previous updates, with the daily chart showing that it remains stuck around a horizontal 20 DMA, while the technical indicators head nowhere within positive territory. In the 4 hours chart, the index hovers around its 20 and 100 SMAs, both within a tight range, while the technical indicators remain stuck around their mid-lines, with no clear directional strength. 

Support levels: 16,497 16,442 16,370 

Resistance levels: 16,582 16,650 16,725 

Gold

Spot gold continues to trade range bound, up by a couple of $ this Tuesday, to close the day right below $1,340.00 a troy ounce. The commodity posted some modest gains at the beginning of the day, surging up to 1,335.18, meeting some selling interest around its 20 DMA. Investors remain cautious ahead of the upcoming US Jackson Hole Symposium, as FED's head, Janet Yellen, may offer some hints over the upcoming economic policy decisions. In the meantime, the daily chart for spot shows that the price continues holding above the 23.6% retracement of its latest bullish run at 1,333.50, while technical indicators remain flat around their mid-lines, with no clear directional strength. In the 4 hours chart, the commodity's recovery stalled around a bearish 20 SMA, while the technical indicators are retreating from near their mid-lines, indicating the absence of buying interest around the current level. 

Support levels: 1,333.50 1,320.251,310.80

Resistance levels: 1,345.20 1,358.05 1,367.20 

WTI Crude Oil

Crude oil prices extended their decline in early Asian trade Tuesday, but edged sharply higher during the American afternoon, trimming half of their Monday losses on news Iran may support joint action to find a balance between demand and support. OPEC and non-OPEC producers will meet in the International Energy Forum in Algiers late September and speculation has been increasing that worldwide producers will again to attempt an output freeze. West Texas Intermediate crude oil prices recovered up to $48.30 a barrel intraday, to settle a few cents above the 48.00 mark, and the daily chart shows that the price bounced sharply from its 100 DMA, while the technical indicators resumed their advances within positive territory and after correcting overbought conditions, in line with further gains for this Wednesday. In the 4 hours chart, however, the price is right below a horizontal 20 SMA, while the technical indicators have lost their upward strength and turned flat around neutral territory, not enough at this point to confirm a bullish extension. 

Support levels: 47.50 46.80 46.20 

Resistance levels: 48.60 49.35 50.10