EUR/USD: dollar´s sell-off continues

EUR/USD Current price: 1.1353

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The EUR/USD pair ends Thursday at its highest level since the Brexit slump, back on June 24th, as dollar's sell-off resumed. Despite US FOMC Minutes left doors open for a rate hike, the mixed stance among policy makers suggests the Central Bank will pass from making  a decision in September, and that they are in no rush to pull the trigger. The pair traded as high as 1.1356, paring gains due to tepid European inflation, as in the region, the Consumer Price Index plunged by 0.6% in July, below the already pessimistic 0.5% decline expected. The annual rate was of 0.2% in the same month, up from 0.1% in June.

In the US, weekly unemployment claims came in at 262K for the week ending August 12th, better than the 265K expected, while the  4-week average came in at 265,250, an increase of 2,500 from the previous week's unrevised average of 262,750. Also, the Philadelphia FED manufacturing survey resulted at 2.0, as expected. Beyond German PPI, there are no major reports scheduled for this Friday, which means that the greenback has little chances of recovering ground.

From a technical point of view, the pair is poised to extend its advance on dollar's weakness, although the rally can be limited by the lack of EUR´s demand. In the 4 hours chart, the RSI indicator heads north around 79, while the Momentum indicator diverges from price action, heading lower as price reaches fresh highs. The 20 SMA in the mentioned time frame, heads sharply  higher below  the current level, supporting a continued advance towards the 1.1460 price zone, a major long term static resistance.

Support levels: 1.1300 1.1265 1.1230

Resistance levels: 1.1360 1.1400 1.1460

EUR/JPY Current price: 113.43

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The EUR/JPY pair continued trading within familiar ranges during the past sessions modestly higher daily basis, but flat for a second consecutive week, as the FX market is all about the dollar these days. Comments of an intervention coming from Japanese authorities about more easing coming next month, helped the pair bounce up to 113.70, also underpinned by a stronger EUR. Technically, the 1 hour chart shows that the price is currently above its 100 and 200 SMAs, while the technical indicators hold within positive territory, but with limited upward strength. In the 4 hours chart, the price was halted for a second consecutive day by selling interest around a bearish 100 SMA, currently around the mentioned daily higher, whilst the technical indicators have turned flat within positive territory. The pair can extend its rally on a break above the 114.05 region, this week high and the 50% retracement of its latest bullish run.

Support levels:  112.80 112.30 111.90

Resistance levels: 113.75 114.05 114.40

GBP/USD Current price: 1.3153

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Following great employment data and higher inflation readings, the UK released this Thursday upbeat Retail Sales figures for July, further fuelling Pound's rally. Retail sales rose, excluding fuel, rose by 1.5% monthly basis, pushing the annual rate of growth up to 5.4% from the previous 3.9%. A cheaper GBP indeed helped sales' gains, with the monthly headline printing 1.4% against previous -0.9%. The GBP/USD pair reached a daily high of 1.3171, having consolidate around the level for most of the last American session, with retracements down to 1.3126 being quickly reverted. In the 4 hours chart, technical indicators look upwardly exhausted within overbought territory, but given that the price remains near its daily high and well above a bullish 20 SMA, the risk remains towards the upside. A strong dynamic resistance is located at 1.3230, the 200 EMA in the mentioned time frame, with a break above it opening doors for an upward continuation up to 1.3320, the 23.6% retracement of the post-Brexit slump.

Support levels: 1.3125 1.3090 1.3050

Resistance levels: 1.3185 1.3230 1.3275

USD/JPY Current price: 99.92

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The USD/JPY pair closes Thursday a few pips below the 100.00 critical psychological level, despite some verbal intervention coming from Japan, as  Vice Finance Minister of International Affairs, Masatsugu Asakawa, said that  they will respond to speculative market moves as needed, while  an adviser to Prime Minister Shinzo Abe said that the Bank of Japan will likely take bold easing measures next month. Still, there is little that the BOJ can do against the ongoing trend, and surprise action, if it actually happens, will likely have short lived effects in JPY crosses. Technically, the 1 hour chart shows that the 100 SMA extended its decline, now heading south below 100.65, a major Fibonacci resistance, whilst the technical indicators head south within bearish territory, supporting a continued decline for this Friday. In the 4 hour chart, the Momentum indicator turned flat around its mid-line, while the RSI indicator is already retreating from its 50 level, and the price develops well below its moving averages, also supporting a bearish extension for the upcoming sessions.

Support levels: 99.90 99.55 99.10

Resistance levels: 100.20 100.65 101.00

AUD/USD Current price: 0.7689

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The AUD/USD pair surged at the beginning of the day, underpinned by a solid Australian jobs report. Unemployment in the country fell to 5.7% against 5.8% median forecast in July, while the participation rate remained stable at 64.9%,  whilst the economy added 26,200 new jobs in July, against a 11K advance expected. The pair returned above the 0.7700 level, but was unable to hold on to gains, falling down to 0.7660 early US session. The pair then grinded back higher, but remains below the key level, with a moderate upward scope in the short term, given that in the  hour chart, the rice is above its 20 SMA whilst the technical indicators head modestly higher around their mid-lines. In the 4 hours chart, the  pair presents a neutral stance, with the Momentum indicators heading higher right above its 100 level, but the RSI holding flat around its mid-line. In this last time frame, the 20 SMA is horizontal, reflecting the lack of directional strength going on ever since the week started.

Support levels: 0.7660 0.7635 0.7600

Resistance levels: 0.7720 0.7755 0.7800