The EUR/USD pair ended the day unchanged around the 1.1000 level

EUR/USD

The EUR/USD pair ended the day unchanged around the 1.1000 level, having however extended its weekly decline by a few pips, hitting 1.0978 mid European morning.  The ECB had an economic policy meeting this Thursday, but failed to motivate investors, leaving its economic policy unchanged, and with Draghi sounding a bit more hawkish than expected, as the European Central Bank's head said, among other things, that additional specific measures were not discussed, while the Brexit does not represent a risk for the region's stability. The US released another batch of positive data, with weekly unemployment claims down to 253K in the week ending July 16th, and Existing Home Sales rising for a fourth consecutive month, up by 1.1% in June. The Philadelphia manufacturing survey, however, disappointed by printing -2.9 in July, from previous 4.7. 

Technically, the dominant bearish trend persists, as the pair has managed to print a lower low weekly basis, at 1.0978, not enough, however, to break bull's determination to defend the 1.1000 region. In the 4 hours chart, the price advanced briefly above a bearish 20 SMA, but was unable to settle above it, while the technical indicators remain within negative territory, but with no clear directional strength. A break below 1.0960 is still required to confirm further slides that can extend down to the critical 1.0800/40 region in the days to come. 

Support levels: 1.0960 1.0910 1.0840

Resistance levels: 1.1050 1.1080 1.1120 

USD/JPY

The Japanese yen slid further against its major rivals, with the USD/JPY pair advancing up to 107.48, a fresh 6-week high during the past Asian session. The pair pared gains after reaching a major dynamic resistance, the 100 DMA, consolidating afterwards nearby. News that were no news, making the rounds of Kuroda talking against implementing "helicopter money," saw the pair plummeting down to 105.41 and quickly bouncing back over 100 pips. The dollar, however, was unable to regain the ground lost, despite good data, as Wall Street plummeted, dragging the pair back down below the 106.00 mark. Short term, the risk is now towards the downside, as in the 1 hour chart, the price is currently developing below its 100 SMA, while the technical indicators have settled near oversold territory, after correcting extreme readings, and with no aims of turning higher. In the 4 hours chart, technical indicators have crossed their mid-lines into negative territory, maintaining their downward slopes, also indicating high chances of a downward continuation for the upcoming sessions. 

Support levels:  105.40 105.05 104.70

Resistance levels: 1106.20 106.60 107.10

GBP/USD

The GBP/USD pair ends the day marginally lower around the 1.3200 level, as the Pound got a hit from local Retail Sales data. According to the official release, the volume of retail sales in June 2016 is estimated to have increased by 4.3% compared to a year before, while falling by 0.9% monthly basis, surpassing quite negative market's forecasts. This Friday, Markit will release as an exception, preliminary readings for July manufacturing and services PMIs, expected below the key 50 mark that separates growth from contraction. Worse-than-expected readings can send the pair down below the 1.3100 mark, to close the week near the 1.3000 figure. Nevertheless, the par presents a neutral stance, having extended its consolidative stage between 1.3050 and 1.3320. Technically, the 4 hours chart shows that the price continues hovering around a horizontal 20 SMA, while the technical indicators remain stuck around their mid-lines, with no certain directional strength.  

Support levels: 1.3165 1.3130 1.3065 

Resistance levels: 1.3250 1.3290 1.3325

AUD/USD

The AUD/USD pair extended its decline down to 0.7452 this Friday, finally paring losses at a major Fibonacci support, the 38.2% retracement of this year's early rally. The level attracted buying interest, sending the pair up to the 0.7500 handle,  as the greenback fell alongside with US stocks. The modest bounce is not enough to confirm further Aussie recoveries, but indicates that in the longer run the downside is well limited. In the short term, the 1 hour chart shows that the price  is now above a modestly bullish 20 SMA, while the technical indicators are hovering around their mid-lines, indicating some short term consolidation ahead. In the 4 hours chart, the price recovered above its 200 EMA, but it's at risk of resuming its slide, as the price was contained by a sharply bearish 20 SMA, currently at 0.7505, while the technical indicators have recovered within positive territory, but lost upward strength, suggesting the pair may retest the critical support this Friday. 

Support levels: 0.7450 0.7410 0.7370  

Resistance levels: 0.7505 0.7560 0.7600

Dow Jones

Wall Street edged lower this Thursday, with the DJIA down 77 points to 18,517.23, ending a nine-day winning streak. The Nasdaq Composite lost 16 points and closed at 5,073.90, while the S&P shed 0.36% to end at 2,165.17. Sentiment turned sour in the American afternoon, after ECB's Draghi decided to leave the euro area economic policy unchanged, claiming that it is "too early" to assess the full Brexit impact on the region. Also, returning concerns over a glut in oil market affected investors sentiment, in spite of strong earnings results. EBay was among the daily winners, adding 11% after reporting impressive quarterly earnings, reporting 43 cents per share on a $2.23 billion revenue. The Dow erased almost all of its weekly gains, but the daily chart shows that the decline has not been enough to affect the dominant bullish trend, as the Momentum indicator maintains a modest bullish slope well above its mid-line, while the RSI indicator has barely retreated from overbought levels. In the shorter term, the 4 hours chart the index is now below its 20 SMA, but the technical indicators are still flat within neutral territory, keeping the downward risk limited. 

Support levels: 18,472 18,431 18,369

Resistance levels: 18,592 18,640 16,695 

FTSE 100

The FTSE 100 closed at 6,699.89, down by 29 points or 0.43%, weighed by a decline in travel-related shares, after recent events in France and Turkey, resulted in a decline in bookings by passengers. EasyJet fell by 5.32% after a weak quarterly earnings report, showing that it was earning less from each passenger it carried. Mining-related shares were modestly higher, with Anglo American adding 1.72% and BHP Billiton up by 1.38%. The benchmark's daily chart supports a continued decline for the upcoming sessions, as the technical indicators keep retreating from near overbought territory, with the Momentum indicator nearing its 100 level. Still the movement seems poised to be a mere correction as the index remains well above its moving averages. In the 4 hours chart, the neutral stance seen on previous updates persists, with the index moving back and forth around a horizontal 20 SMA and the technical indicators holding within neutral territory. 

Support levels: 6,668 6,615 6,561 

Resistance levels: 6,720 6,755 6,8065 

DAX

After opening modestly higher, European equities turned negative ahead of the ECB, closing the day mixed, not far from their opening levels. The German DAX advanced 0.14% to end at 10,156.21, after the European Central Bank decided to leave its rates unchanged at record lows. Banks lead the advance, with Commerzbank up by 1.14% and Deutsche adding 0.82%. Lufthansa led decliners, down 2.54% after slashing profits for this year. The daily chart shows that the index held above its 200 DMA, but that a neutral-to-positive tone persists, as the technical indicators remain within positive territory, but with no certain directional strength. In the 4 hours chart, the index seems to be consolidating its latest gains, with technical indicators also heading nowhere within positive territory. The roof of the daily descendant channel that has been driving action ever since mid April stands in the 10,280 region, and only a break above it could confirm a more sustainable recovery in the German benchmark. 

Support levels: 10,069 10,010 9,943

Resistance levels: 10,159 10,217 10,280

Nikkei

Asian share markets closed mostly higher, with the Nikkei 225 ending the day at 16,810.22, up by 129 points. Gains were inspired by Wall Street's previous run to fresh record highs, fueling demand for high yielding assets. Also, boosting local shares were increasing hopes of a sizable stimulus package to be announced by the BOJ next week. The benchmark however, lost its shine in after-hours trading, falling down to the 16,550 region as US shares turned sharply lower. The daily slump has found support around a flat 100 DMA, currently at 16,464, and technical readings suggests a moderate decline ahead, as indicators turned lower, but remain well above their mid-lines. For the shorter term, and according to the 4 hours chart, the downward potential is limited, as the technical indicators lack bearish strength within neutral territory, although the 20 SMA is now capping the upside around 16,668. 

Support levels: 16,515 16,464 16,397 

Resistance levels: 16,610 16,668 16,720

Gold

Spot gold surged from an early low established at $1,310.76 a troy ounce, surging around $20.00, fueled by the sharp u-turn in US stocks. Wall Street plummeted during the American afternoon with the DJIA pretty much erasing its weekly gains, fueling demand for the safe-haven metal. Now trading around 1,330.00, the commodity has trimmed most of its weekly losses, and trades back a handful of cents below the 23.6% retracement of its latest bullish run, the immediate resistance at 1,333.50. Daily basis, the price is still below a horizontal 20 SMA, but the technical indicators have lost their bearish strength, turning modestly higher within negative territory, all of which suggest that the price needs to extend beyond the mentioned resistance to confirm  a steeper recovery. In the 4 hours chart, the price has recovered above its 20 SMA, while the RSI indicator heads north around 54, in line with further short term gains.  

Support levels: 1,320.10 1,308.00 1,299.45    

Resistance levels: 1,333.50 1,342.50 1,351.80

WTI Crude Oil

Crude oil prices plummeted on news of a large addition to gasoline stockpiles, fueling concerns over a global glut as refined products´ stocks keep increasing. The US  Energy Information Administration reported also that supplies of natural-gas rose 34 billion cubic feet for the week ended July 15th, slightly below market's expectations.     West Texas Intermediate futures fell down to $44.60 a barrel, ending the day with a strong negative tone. The daily chart shows that the 20 SMA has extended its decline and is approaching the 100 SMA, both above the current level, while the RSI indicator heads  south around 40, pointing for some further slides ahead. In the 4 hours chart, the price remains well below its moving averages, while the technical indicators have lost bearish momentum near oversold territory, with no signs of turning higher, also in line with a new leg lower that can see the price falling down to 42.50. 

Support levels: 44.40 43.70 43.10

Resistance levels: 45.50 46.20 46.75