The EUR/USD pair traded in a limited range around its Tuesday's opening for most of this Wednesday

EUR/USD

The EUR/USD pair traded in a limited range around its Tuesday's opening for most of this Wednesday, as investors waited for the latest from the US Federal Reserve, after latest officers' talks over a possible rate hike this upcoming September. Nevertheless, the greenback retained the soft tone triggered by the raft of dismal data released ever since the month started. 

The macroeconomic calendar was quite scarce in both economies, although the EU will release its June Current Account and July inflation this Thursday, this last expected to have fallen by 0.5% monthly basis. There will be no relevant releases in the US, but some minor employment and manufacturing figures.

The EUR/USD pair surged up to 1.1315, holding around the 1.1300 region at the end of the day, with the dollar resuming its slide after  the release of the FOMC Minutes showing that policymakers agreed to wait for more data, while some believe that a rake hike is needed soon, overall, implying that anything is possible, but members would like to be more confident before making a decision. Technically, the 4 hours chart shows that indicators turned higher within overbought territory, whilst the 20 SMA maintains a sharp bullish slope well below the current level. Overall, the risk remains towards the upside, with a break beyond 1.1325 required to confirm additional gains up to 1.1400 this Thursday. 

Support levels: 1.1265 1.1230 1.1190 

Resistance levels: 1.1325 1.1360 1.140

USD/JPY

The USD/JPY pair recovered some ground at the beginning of the day, advancing up to 101.16, amid the uncertainty generated by FED's Dudley when it comes to a date of a US rate hike, but quickly reversed its gains, to trade below the critical 100.65 price zone for most of the day. The soft tone of the US Federal Reserve, with no clear clues on when it would move next, sent the pair back down, dangerously close to the critical 100.00 level at the end of the end. The dominant bearish trend remains intact, with a break below the mentioned level probably fueling the sell-off during the upcoming sessions. Technically, the1 hour chart shows that that a spike up to the 100.65 region was quickly reverted, leaving indicators heading sharply lower near oversold levels. Also, the pair faltered around a bearish 100 SMA when it reached the mentioned daily high, adding to the bearish case. In the 4 hours chart, the technical indicators head sharply lower within negative territory, retreating from their mid-lines, whilst the 100 SMA decline further below the 200 SMA, both far above the current level, in line with the shorter term  outlook. 

Support levels: 99.90 99.55 99.20

Resistance levels: 100.30 100.65 101.00

GBP/USD

The Sterling Pound eased from the weekly high set at 1.3071 against the greenback, despite quite encouraging employment figures released during the London session. According to official data, employment rose by 172K in the three months to June, while unemployment rate in the same period, remained unchanged at 4.9%, while average weekly earnings growth picked up to 2.3%YoY from 2.2%. The GBP/USD pair briefly advanced, up to 1.3059, but quickly reversed gains to consolidate around the 1.3000 figure ahead of US FED's Minutes. After the release, the pair surpassed the mentioned high, as the FED gave no clear hints for a September rate hike, setting a fresh weekly high at 1.3085. The short term technical picture is bullish, as in the 4 hours chart, the price holds above a bullish 20 SMA, currently around 1.2950, while the technical indicators have extended to fresh monthly highs within positive territory, maintaining their bullish slopes. Nevertheless, a break beyond 1.3100 is required to confirm a firmer recovery that can extend up to the 1.3200/20 region during the upcoming sessions. 

Support levels: 1.3045 1.3000 1.2950 

Resistance levels: 1.3095 1.3140 1.3190

AUD/USD

The Australian dollar plummeted against its American rival, reaching 0.7612 in the US afternoon, with no clear catalyst behind the slump, although some analyst blame it on profit taking ahead of FED's Minutes. Inflation data coming from Australia was modestly encouraging as the Wage Price index for the Q2 rose as expected by 0.5%, while previous reading was upwardly revised from 0.4% to 0.5%. Australia will release its July employment figures during the upcoming hours, and the country is expected to have added 11.0K new jobs, whilst the unemployment rate is expected to remain steady at 5.8%. Better-than-expected numbers could drive the pair back above the 0.7700 figure, although the upward potential looks now limited, given that in the 4 hours chart, the post-FOMC's Minutes recovery stalled around a bearish 20 SMA, at 0.7673, whilst the technical indicators have turned higher, but remain below their mid-lines. The downward potential seems limited as long as the price holds above 0.7600, the 23.6% retracement of this year early rally. 

Support levels: 0.7636 0.7600 0.7570

Resistance levels: 0.7675 0.7710 0.7745

Dow Jones

US indexes trimmed all of their daily losses and closed modestly higher, after the FOMC's Minutes showed that US policymakers are still split over the timing of a rate hike. Although a rate hike is still possible over the upcoming months, officers would prefer to see inflation closer to the 2% target before pulling the trigger. The Dow Jones Industrial Average added 21 points, to close at 18,572.94, whilst the Nasdaq Composite ended up by 1 point at 5,228.66. The S&P added 0.19% or 4 points to 2,182.22. Stocks benefited with the absence of clarity, and could extend their recoveries during the upcoming sessions. In the meantime, the daily chart for the Dow Jones shows that the index maintains a neutral stance, holding above a horizontal 20 SMA and quickly recovering after testing it intraday. Still, and in the mentioned time frame, technical indicators continue to lack directional momentum within positive territory. In the shorter term, the 4 hours chart presents a negative technical outlook, as indicators head south within negative territory, whilst the index develops below a horizontal 20 SMA.  

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

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

FTSE 100

The FTSE 100 shed 34 points to close this Wednesday at 6,859.15, dragged lower by mining-related shares that continued their early week slide, and a sharp slide in car insurer Admiral that closed 7.7% lower, after saying that the Brexit has affected its solvency ratio. Among miners, Antofagasta was the biggest loser, down by 2.9% and followed by Anglo American  that shed 2.73%. The Footsie recovered some ground after the close, with futures now trading around 6,890, and the daily chart showing that the bullish tone persists, as the 20 SMA extended its advance below the current level, now around 6,784, while the Momentum indicator is horizontal above its 100 level and the RSI indicator consolidates near overbought levels. In the 4 hours chart, the benchmark presents a neutral stance, holding a few points below its 20 SMA and the technical indicators lacking directional strength. 

Support levels: 6,882 6,831 6,782 

Resistance levels: 6,920 6,960 7,000

DAX

European index fell for a second consecutive day, with the German DAX shedding 1.30% to end at 10,537.67, its lowest close in over a week. Trading was subdued across Europe, as oil prices traded generally lower in the London session whilst investors remained in cautious mode ahead of the US Federal Reserve latest minutes. The index recovered some ground after the close, now hovering in the 10,600 region, having recovered ground on the back of FED's limited aims to raise rates as soon as next month. Only three out of the thirty components closed with gains, with Deutsche Boerse up 0.72% and Adidas by 0.69%. From a technical point of view, the daily chart shows that the risk of further slides persists, as despite the benchmark is above its moving averages, with the 20 DMA still heading north far below the current level, indicators continued retreating within positive territory. In the 4 hours chart, the index is currently developing below a horizontal 20 SMA, whilst technical indicators have corrected oversold readings, but turned flat below their mid-lines, converging with the longer term outlook. 

Support levels: 10,557 10,474 10,435

Resistance levels: 10,647 10,697 10,744 

Nikkei

The Nikkei 225 rose as the yen eased modestly, closing the day at 16,745.64, up by 0.90% or 150 points. The benchmark found further support on expectations of BOJ's purchases of ETFs, to pare JPY's gains. Sumitomo Heavy Industries led advancers, up by 8.21%, while Screen Holdings Co, was the biggest loser, down 4.39%. The benchmark retreated over 100 points in after hours trading, as the yen recovered ground against the greenback, now poised to open the day around 16,620. Technically, the daily chart shows that the index is barely holding above a horizontal 20 SMA, around 16,525, now the immediate support, whilst the technical indicators have turned flat within their mid-lines, with no clear directional strength, but with the downward potential slowly increasing. In the 4 hours chart, the index was unable to recover above a now bearish 20 SMA, now at 16,705, whilst the technical indicators remain flat within bearish territory, also indicating the risk of further slides. 

Support levels: 16,525 16,442 16,365 

Resistance levels: 16,647 16,705 16,782

Gold

Gold prices seesawed after the release of US FOMC Minutes, showing that officers are willing to raise rates, but will like to gather more data before pulling the trigger. Spot gold plunged to $1,335.63 a troy ounce after the release, but recovered quickly to close the day pretty much flat around $1,345. Investors have now to digest the mixed message before sending the commodity in a certain direction. In the meantime, the daily chart presents a neutral stance, as the technical indicators continue hovering around their mid-lines with no clear directional strength, whilst the price is barely above a horizontal 20 SMA. In the shorter term, and according to the 4 hours chart, a slightly positive tone prevails, given that the price is standing above its moving averages that anyway remained confined to a tight range, whilst indicators lack directional strength within neutral territory. 

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 started the day with a negative tone, but trimmed most of its intraday losses after the release of the US Energy Information Administration weekly report, showing that crude supplies declined by 2.5 million barrels in the week ended Aug. 12th, well above the 520,000 advance expected. Gasoline supplies declined by 2.7 million barrels, while distillate stockpiles rose 1.9 million barrels last week, according to the same report.  The American Petroleum Institute late Tuesday reported a drawdown of 1 million barrels, which helped to ease fears over a worldwide glut. West Texas Intermediate crude oil futures advanced further on renewed dollar weakness, extending its weekly advance by a few cents, up to $46.89 a barrel. The commodity is now poised to extend its advance, at least from a technical point of view, given that in the daily chart, technical indicators keep heading higher around overbought levels, whilst the price extended above its 100 DMA, for the first time in almost a month. In the shorter term, the 4 hours chart also presents a positive tone, as indicators regained the upside, whilst the 20 SMA maintains a strong bullish slope, now offering a dynamic support around 45.65. 

Support levels: 46.65 46.10 45.60 

Resistance levels: 47.10 47.70 48.30