The dollar traded mixed against its major rivals

EUR/USD

The dollar traded mixed against its major rivals, but overall strong, pressured against the Pound and the dollar bloc at the beginning of the day, but up against the common currency,  with the EUR/USD pair falling down to 1.1004, early US session and ahead of the release of FOMC Minutes. The Pound was an exception, outperforming on news that UK Prime Minister May has accepted that Parliament should vote on her plan for exiting the EU. 

At the beginning of the day, the Eurozone industrial production surprised on the upside in August up August by 1.6% when compared to July, while compared to August 2015, it rose by 1.8%,  beating expectations and due to production of durable consumer goods rising by 4.3%, capital goods by 3.5%, energy by 3.3% and intermediate goods by 1.4%. Despite the figure shows a strong bounce in growth from July's poor figures, the common currency remained under selling pressure,  mostly due to the widening rate differentials between Germany and the US, given that the  two-year differential  was around  154bp this Wednesday, the highest level in a decade.  

FOMC's Minutes disappointed as usual, as whilst several voters thought that rates should rise "relatively soon,", they also said that a reasonable case could be made for both, hiking and waiting. Also, a substantial majority saw risk roughly balance, although low inflation cast doubts over the upcoming hike. A clearly split FED and more uncertainty surrounding the timing of the so long awaited rate hike. 

The market barely reacted to the news, with the EUR/USD pair bouncing modestly from its daily low, and technically poised to extend its decline, as in the 4 hours chart, the 20 SMA has extended its downward move to converge now with the long term daily ascendant trend line broken earlier this week, a line in the sand for the ongoing downward move. In the same chart, technical indicators have lost their downward strength, but hold within oversold readings. Adding the fact that the pair is near the critical 1.1000 level, further slides are likely on a break below the psychological figure.

Support levels: 1.0990 1.0960 1.0920    

Resistance levels: 1.1045 1.1080 1.1120 

USD/JPY

The USD/JPY pair traded as high as 104.47 this Wednesday, the highest since July 29th, and ahead of the release of the FOMC Minutes. Data coming from Japan at the beginning of the day, came better-than-expected as core  machine orders dropped 2.2% in August and when compared to July, beating expectations of a 5.5% decline. Also, machine orders rose 11.6% year-on-year, exceeding expectations of a 6.5% advance. The pair retreated after the release of the latest FOMC Minutes which left a sour taste on traders' mouth, as its clear the lack of consensus among US policy makers. Still holding above 104.00, the short term picture for the pair suggests that the downward move may extend, at least in corrective mode, as in the 1 hour chart, technical indicators have turned sharply lower from overbought readings, although the price remains well above its 100 and 200 SMAs, with the shortest around 103.60. In the 4 hours chart, technical indicators have also lost upward strength, but are far from presenting a bearish stance, while the price is well above its moving averages that slowly grind higher, supporting the case of a downward corrective move ahead of a new leg higher. 

Support levels: 104.00 103.60 103.20

Resistance levels: 104.50 104.95 105.35

GBP/USD

After falling to a daily low of 1.2088, the GBP/USD pair rebounded sharply this Wednesday, reaching 1.2324 on news that the UK PM, Theresa May, has agreed a consultation with the Parliament over Brexit negotiations, and that she won't trigger the Art. 50 of the Lisbon treaty without parliamentary approval,  remarking however, that the Parliament will be heard as long as it does “undermine the negotiating position of the government.” A sense of relief helped speculative interest to take some profits out of the recent Pound's slump, although selling interest remained strong, given that the pair retreated back towards the 1.2160 region during the American session. The pair bounced modestly after the release of the FOMC Minutes, but is flat daily basis, and technical readings suggest that the risk remains towards the downside, as in the 4 hours chart, the 20 SMA caps the upside, currently at 1.2316. In the same chart, technical indicators have managed to correct extreme oversold readings, but remain within negative territory and below their previous weekly highs, supporting a downward extension on renewed selling interest below 1.2200. 

Support levels: 1.2190 1.2150 1.2110 

Resistance levels: 1.2285 1.2315 1.2350 

AUD/USD

The AUD/USD pair recovered ground amid easing Brexit concerns, but was rejected on an approach to the 0.7600 figure, overall maintaining a bearish tone. The Aussie benefited by a solid uptick in October’s Westpac Consumer Confidence Index, up to 1.1% from previous 0.3%,  suggesting rising optimism within the domestic economy. The short term picture for the pair shows that the upside remains limited, given that in the 1 hour chart, the price is struggling to recover above a bullish 20 SMA, while technical indicators are mostly flat below their mid-lines. In the 4 hours chart, the price is well below a modestly bearish 20 SMA, while technical indicators head modestly lower below their mid-lines, lacking directional momentum. In this last time frame, the 200 EMA converges with the 23.6% retracement of this year's rally around 0.7600, reinforcing the resistance area. There's a daily ascendant trend line coming from May 30th daily low at 0.7148, at 0.7520 for this Thursday, meaning that a break below this last could fuel Aussie's slide towards the critical 0.7450 Fibonacci level. 

Support levels: 0.7520 0.7490 0.7450    

Resistance levels: 0.7550 0.7595 0.7630

Dow Jones

US indexes were trading modestly higher ahead of the release of the FOMC Minutes, giving up some ground afterwards, and closing the day mixed, around their daily opening levels. The Dow Jones Industrial Average gained 15 points or 0.09% to close at 18,144.20, whilst the S&P also managed to edge higher, up by 2 points, to 2,139.17. The Nasdaq Composite, however, closed in the red, down by 7 points or 0.15% at 5,239.02. US share early attempt to advance pared after the FED hint a soon rate hike, although given that Minutes maintained the mixed tone seen on the last couple of meetings, selling interest  was contained. The daily chart for the Dow, shows that the index traded within the lower half of its Tuesday's range,  with an intraday recovery stalling short of the 20 and 100 DMAs, both in the 18,240/70 region, capping the upside. Technical indicators in the mentioned time frame lack directional strength, although the RSI indicator holds around 44, leaning the scale towards the downside. Shorter term, the 4 hours chart favors a bearish extension, given that technical indicators head firmly lower well below their mid-lines, whilst the 20 SMA is crossing below the 100 SMA, both around 18,260, reinforcing the dynamic resistance area. 

Support levels: 18,109 18,053 17,990

Resistance levels: 18,194 18,260 18,325 

FTSE 100

The strong bounce in the Pound early London weighed on local shares, sending the FTSE 100 lower this Wednesday. The Footsie closed the day at 7,024.01, down by 0.66% or 46 points, with banking equities among the biggest losers. On the positive side, Glencore was the best performer, ending the day 6.44% higher, while Rio Tinto added 1.04% and Anglo American 0.92%. The daily chart for the index shows that the RSI indicator continues retreating from overbought readings, while the Momentum indicator approaches its 100 level, suggesting it may extend its slide further on Thursday. In the mentioned time frame, however, the 20 SMA heads sharply higher below the current level, now around 6,926, a major dynamic support. In the 4 hours chart, the index is now below a horizontal 20 SMA, now at 7,063, while technical indicators have turned flat around their mid-lines, indicating that the downward potential is limited as long as it holds above the 7,000 figure. 

Support levels: 7,005 6,952 6,926

Resistance levels: 7,063 7,129 7,170 

DAX

European stocks followed the lead of Asian markets, ending the day mostly lower and with the German DAX erasing all of its Tuesday's gains, closing at 10,523.07, down by 54 points. Bank-related equities, however, managed to add some gains, with Deutsche Bank up 0.17% and Commerzbank gaining 0.89%. Health care and pharmaceutical shares edged lower, overshadowing modest gains from the banking sector.  The benchmark stands around the mentioned close at the beginning of the Asian session, technically neutral according to the daily chart, although at risk of extending its decline, given that in the daily chart, it´s hovering a few points above a horizontal 20 SMA, while technical indicators are heading south around their mid-lines. In the 4 hours chart, the index is trapped within its moving averages, while technical indicators hold within neutral territory, giving no clear clues on what's next for the index. Still, a downward extension below the daily low of 10,498, while likely signal a downward move for the upcoming sessions. 

Support levels: 10,498 10,450 10,385

Resistance levels: 10,585 10,647 10,705 

Nikkei

Asian shares markets traded lower following the weak tone of US equities, with the Nikkei 225 closing the day down 182 points or 1.09%, at 16,840.00. Also, the late slump in Pound fueled risk aversion and therefore demand for the JPY, and a stronger currency also weighed in local sentiment. Falling stocks outnumbered advancing ones, with Toho Zinc leading the decline, down by 5.51%, on persistent base metals' weakness. The benchmark bounced during London trading hours up to 16,977, holding nearby ahead of the Asian opening. Holding within familiar ranges, the daily chart shows that the index is still above its moving averages, with the 20 SMA slowly turning north, and technical indicators holding within positive territory, but with no directional momentum. In the 4 hours chart, the benchmark is recovering above its 20 SMA that still lacks directional strength, while the Momentum indicator heads lower around 100 and the RSI indicator advances around 57, presenting a mixed picture, but overall suggesting that the downside is limited. 

Support levels: 16,932 16,865 19,810

Resistance levels: 16,977 17,040 17,100 

Gold

Gold prices spent this Wednesday in consolidative mode, with spot closing the day around $1,254.80 a troy ounce, having, however, extended its weekly slide to a fresh low of 1,249.72. The commodity advanced at the beginning of the day as the dollar gave back some ground, but was unable to hold on to gains, mostly due to dollar's bulls refusing to give up. Speculation that the US Federal Reserve will increase interest rates before the end, despite the absence of clarity in the just released FOMC Minutes, keeps on weighing in the commodity, which entered in a bearish market last week, after breaking through 1,300. Technically, the daily chart shows that indicators continue consolidating within oversold levels, whilst the price remains below all of its moving averages, and more relevant, below the 61.8% retracement of its latest bullish run at 1,266.30. Shorter term, the 4 hours chart implies a limited upward potential, as the price remains capped by a flat 20 SMA, around 1,257.20, while technical indicators hold within negative territory, bouncing slightly but without enough strength to confirm an upward extension. 

Support levels: 1,249.50 1,241.35 1,234.70

Resistance levels: 1,257.20 1,266.30 1,277.50

WTI Crude Oil