The dollar closed the day lower against all of its major rivals

EUR/USD

The dollar closed the day lower against all of its major rivals, avoiding an even deeper sell-off as the New York Federal Reserve President, William Dudley, said that a September rate hike "is possible," early US session. Greenback's sell-off began during the past Asian session, as after Wall Street's close, San Francisco Fed President John Williams, said that the FED should consider setting higher inflation targets. 

Adding to dollar's woes was quite a busy, with slightly encouraging releases in Europe, and another batch of disappointing figures in the US. According to the German ZEW survey, business confidence improved in the country and the whole region in August when compared to the previous month, although the advance was quite moderate. Also, the EU trade balance trade balance printed a  €29.2B surplus in trade in goods with the rest of the world in June 2016, compared with €25.5B a year before.  Dudley's words were not enough to neutralize worse-than-expected US inflation, as it remained unchanged in July, whilst the annual rate dipped down to 0.8% from 1.0% in June, while Housing Starts accelerated at its fastest pace in five months, up 2.1% in July, although Building Permits decreased modestly. 

The EUR/USD pair surged up to 1.1322, quickly retreating below the 1.1300 mark, but holding on to gains by the end of the day, trading in the 1.1280 region, overall bullish in the short term, as the price stands at pre-US news levels, and the  4 hours chart shows that the RSI indicator is bouncing higher within overbought levels, after a limited downward correction. In the same chart, the price is far above its 20 SMA that anyway gained upward strength, rather tracking the latest move than anticipating more. Still, as long as the price holds above 1.1235, past week high, the risk is towards the upside, with scope for an extension up to 1.1460, a major long term static resistance. 

Support levels: 1.1235 1.1190 1.1150

Resistance levels: 1.1325 1.1360 1.1400

USD/JPY

A weakening dollar on rising concerns over the US economic health, sent stocks sharply lower and the JPY skyrocketing, with the USD/JPY plummeting to its lowest since the Brexit, as the pair printed a daily low of 99.53 in the peak of dollar's sell-off mid European session. The pair recovered above the 100.00 mark ahead of US opening, but pared gains below the critical Fibonacci resistance at 100.65, the 50% retracement of the 2011/2015 rally. A Japanese MOF officer, Asakawa, rushed to the wires to inform that financial authorities were closely watching FX markets with a "sense of urgency," a subdued way to "menace" markets with intervention, but as usual, authorities jawboning was not enough.  The pair was further weighed by stocks, broadly lower across the word. Technically, the 1 hour chart shows that the price is far below its moving averages, while the technical indicators have corrected the extreme oversold readings reached with the mentioned low, but are currently resuming their slides within negative territory. In the 4 hours chart, the 100 SMA extends its decline below the 200 SMA, both standing far above the current level, whilst the RSI indicator has also resumed its decline after correcting oversold readings, currently around 35, all of which supports a continued slide for the upcoming sessions. 

Support levels: 99.85 99.50 99.10

Resistance levels: 100.30 100.65 101.00 

GBP/USD

The GBP/USD pair edged sharply higher, trimming most of last week's losses this Tuesday, having recovered the 1.3000 level on broad dollar's weakness, and positive data coming from the UK. During London trading hours, inflation surprised positively, as the CPI rose by 0.6% in the year to July 2016, compared with a 0.5% rise in the year to June. Compared to the previous month, inflation decreased by 0.1% as expected. In the same month, the PPI rose yearly basis, with factory gates´ prices up by 0.3% and input prices up by 4.3%. Given that the BOE has extended its economic stimulus programs, rising inflation during the upcoming months should not be a surprise. Poor inflation figures in the US, on the other hand, fueled the rally, temporarily interrupted on a first attempt to break above the 1.3000 level. Anyway, the Pound managed to advance in US trading hours, holding near its daily highs set in the 1.3040 region by the end of the day. Technically, the pair seems poised to extend its gains, as in the 4 hours chart, the price is well above a now flat 20 SMA, while the technical indicators present sharp upward slopes well into positive territory. Above 1.3045, the rally could extend up to the 1.3100 region, where the next line of sellers awaits to add to the dominant trend. 

Support levels: 1.3020 1.2980 1.2940 

Resistance levels: 1.3045 1.3095 1.3140

AUD/USD

The Australian dollar benefited from gold's recovery during the first half of the day, with the AUD/USD pair extending up to 0.7749 intraday.  The pair however, retreated alongside with the commodity and led by Wall Street's decline, but managed to close the day above the 0.7700 level, regaining part of its late strength. RBA's Governor Glenn Stevens hit the wires in the US afternoon, stating that the global economy is ready to absorb a US rate hike, venting his frustration over the inaction of the world's largest economy central bank. Technically, a modest bullish stance is present ahead of the Asian opening, as in the 1 hour chart, the price is above a bullish 20 SMA, whilst the technical indicators hold directionless within positive territory. In the 4 hours chart, the price recovered after briefly falling below its 20 SMA, whilst the technical indicators are currently bouncing from their mid-lines, still lacking enough momentum to confirm further gains ahead. 

Support levels: 0.7680 0.7635 07600 

Resistance levels: 0.7740 0.7790 0.7830

Dow Jones

US indexes pulled back from record highs, closing in the red in a mixture of continuous poor US data and hawkish comments coming from FED's Dudley, who stated that the US Central Bank could raise rates this September. The Dow Jones Industrial Average closed down 84 points at 18,552.02, while the Nasdaq Composite and the S&P shed 0.66% and 0.55% respectively. The DJIA maintains a moderate positive tone in the daily chart, as the benchmark remains above a horizontal 20 DMA, around 18,491, whilst the 100 and 200 DMAs keep heading higher far below the shorter one. In the same chart, the technical indicators have turned slightly lower within positive territory, not enough to confirm further slides. In the 4 hours chart,  the index has corrected around the23.6% of its latest daily rally, while the index is below its 20 SMA as the RSI indicator heads lower around 46, supporting a short term bearish extension towards the mentioned 18,491, the mentioned SMA and the immediate support. A downward acceleration below the level could see the decline extending down to the 18,400 region during the upcoming sessions, particularly if FOMC Minutes to be released this Wednesday, result less dovish than expected. 

Support levels: 18,532 18,491 18,455

Resistance levels: 18,590 18,640 18,675

FTSE 100

The FTSE 100 turned lower this Tuesday, closing the day down by 0.68% or 46 points to end at 6,893.92, weighed by a recovery in the Pound that sent export-oriented equities lower. Airline shares  were the worst performers, with EasyJet down 2.48% and International Consolidated Airlines plunging 2.11%. Mining-related equities, however,  edged higher, limiting losses in the benchmark, with Antofagasta up 8.66%, followed by Rio Tinto that added 2.09%. The daily chart for the index suggests that the pair may correct lower after eight straight days of gains, but the downward risk seems limited, as the benchmark is well above a bullish 20 DMA, whilst the RSI indicator is barely retreating within overbought levels and the Momentum indicator turned modestly lower in positive territory. In the 4 hours chart, the index is hovering around its 20 SMA, whilst the technical indicators approach their mid-lines from positive territory, supporting the case of a downward correction. 

Support levels: 6,882 6,831 6,782 

Resistance levels: 6,920 6,960 7,000 

DAX

European indexes plummeted at the opening, tracking Asian share markets sharp losses, but the German DAX bounced off lows after the release of the ZEW survey, showing that economic sentiment improved in the country in August, after plummeting a month before, but was unable to hold on to gains. The benchmark traded as low as 10,663, and closed the day at 10,676.65, down by 62 points or 0.58%,   and despite the daily retracement, the DAX remains within bullish territory. Technically the daily chart shows that the index remains above a bullish 20 SMA that continues heading north far above the 100 and 200 SMAs, whilst the technical indicators are retreating within positive territory, not enough to confirm a steeper slide. In the 4 hours chart, the index is now below a horizontal 20 SMA, currently at 10,697, the immediate resistance, while the Momentum indicator is flat around its 100 level, and the RSI indicator heads lower around 55, indicating that the index may decline further on a break below the daily low, set at 10,633. 

Support levels: 10,633 10,557 10,474

Resistance levels: 10,697 10,744 10,810

Nikkei

The Nikkei 225 sunk 268 points or 1.62% to close at 16,596.51, as the Japanese yen surged against most of its rivals, fueled by persistent dollar's weakness. Despite a positive opening, sentiment turned sour after the USD/JPY pair broke below the 100.60 region, prompting export-oriented equities lower. Sumitomo Realty & Development was the biggest loser, down by 5.04%, followed by Sapporo Holdings that shed 4.73%. Fujitsu, on the other hand, was the best performer, adding 2.88% daily basis.  The poor performance of Wall Street kept the benchmark near its lows in after hours trading, and is poised to open the day around 16,577, with the daily chart showing that the benchmark is pressuring its 20 DMA, whilst the technical indicators have turned lower, and are about to cross their mid-lines into negative territory. In the 4 hours chart, the 20 SMA has turned lower above the current level, whilst the technical indicators remain below their mid-lines, with modest downward slopes at the time being. 

Support levels: 16,522 16,442 16,365 

Resistance levels: 16,640 16,696 16,760

Gold

Spot gold surged intraday to a fresh 2-week high of $1,358.03 a troy ounce on the back of dollar's weakness, reversing course after Dudley's comments, but slowly recovering afterwards to close the day with gains around 1,349.00. The daily chart shows that the price has recovered further above a modestly bullish 20 SMA, while the Momentum indicator remains stuck around its 100 line and the RSI indicator heads north around 55, all of which favors the upside, despite the current absence of upward strength. In the 4 hours chart, the price has bounced from a congestion of moving averages around 1341/2, while the technical indicators diverge from each other around their mid-lines, all of which limits the downward scope of the commodity, but is not enough to confirm further gains, unless it can firmly establish above the 1,360.00 region. 

Support levels: 1,333.50 1,320.251,310.80

Resistance levels: 1,352.60 1,359.80 1,367.20

WTI Crude Oil

Crude oil prices kept rallying to fresh monthly highs, with West Texas Intermediate crude surging up to $46.71 a barrel, up by 1.8% daily basis and pretty much erasing all of its July losses.  News that Russia is willing to join the OPEC in the informal meeting scheduled for late September to discuss the market's issues, underpinned the advance,  alongside with news coming from Nigeria, as militant attacks have once again led to production losses in the country.  Technically, the daily chart shows that the price is above its 100 DMA for the first time since late July, whilst the technical indicators maintain their sharp upward slopes, nearing overbought territory. In the 4 hours chart, the RSI indicator heads higher around 77, while the Momentum indicator has corrected extreme readings before turning flat within positive territory. In this last time fame, the 20 SMA heads north after crossing above the 100 and 200 SMAs, all of which supports some further advances, particularly on an extension beyond 46.80, the immediate resistance. 

Support levels: 46.20 45.60 45.00 

Resistance levels: 46.80 47.50 48.15