EUR/USD: dollar resurges alongside with hopes of a rate hike

EUR/USD Current price: 1.1139

View Live Chart for the EUR/USD

In a day of relatively little news´ flow, the EUR/USD pair traded within  its Wednesday's range, topping at 1.1191 at the beginning of the day, before turning lower. Down daily basis, there were no relevant news in Europe, whilst the US released some minor readings. Jobless claims in the country were little changed  in the week ending August 6th, coming in at 266,000, a decrease of 1,000 from the previous week's revised level. The previous week's level was revised down by 2,000 from 269,000 to 267,000. The 4-week moving average was 262,750, up by 3,000 from the previous week's revised average. Import prices advanced 0.1% in July, following a 0.6% rise in the previous month, while US exports rose 0.2% in July, after advancing 0.8%  in June.  The dollar edged lower against all of its major rivals, except for the Pound and the CAD as a recovery in oil prices underpinned market's sentiment.

The EUR/USD pair trades not far from a daily low of 1.1135 at the end of the day, losing the upward potential seen on previous updates, as the pair seems unable to settle above the 1.1160 region, a strong Fibonacci resistance, although the downward potential remains limited, as the price is holding also above the 1.1120 price zone, the 38.2% retracement of its latest weekly rally, and a sharply bullish 20 SMA in the 4 hours chart. Nevertheless and in the mentioned  time frame, technical indicators have turned south within positive territory, anticipating some further slides for this Friday. The US will release its July Retail Sales figures in the last day of the week, expected generally lower compared to the previous month. If the numbers are further disappointing, the greenback will likely close the week with a negative tone, with the pair then poised to recover up to 1.1235, last week high.

Support levels: 1.1125 1.1080 1.1045

Resistance levels: 1.1165 1.1190 1.1235

EUR/JPY Current price: 113.37

View Live Chart for the EUR/JPY

The EUR/JPY pair edged modestly higher this Thursday, with the Japanese yen undermined by a strong recovery in US stocks. Nevertheless, the pair continues trading within its early weekly range, maintaining a neutral stance ever since it started. The pair briefly  fell at the beginning of the day, but recovered quickly from a low set at 112.69, a couple of pips below the previous one. Daily basis, the pair keeps holding above the 61.8% retracement of its post-Brexit's slump rally, which limits chances of a longer term decline. In the short term, the downward potential is also moderate, given that in the 1 hour chart, the price is currently standing above its 100 and 200 SMAs, whilst the technical indicators hold within positive territory, although with no upward strength. In the 4 hours chart, technical indicators present a neutral stance, still hovering around their mid-lines, with the 100 and 200 SMAs converging around 114.60, the level to overcome to see the pair recovering further.

Support levels:  112.80 112.30 111.90

Resistance levels: 113.40 113.75 114.10

GBP/USD Current price: 1.2958

View Live Chart for the GBP/USD

The GBP/USD pair fell to a fresh 4-week low of 1.2935, with intraday bounces afterwards being rejected by selling interest around the 1.3000 figure. The UK released the  RICS report for July during the Asian session, showing that the overall house price balance fell from 15% to 5%, the lowest reading since April 2013. The Pound has been extremely vulnerable ever since the Brexit, and things are showing no signs of changing near term, with uncertainty over the economic future of the kingdom still weighing on the local currency. The UK will release its CB Leading economic index for July this Friday, but US Retail Sales will likely be more relevant when it comes to determinate the pair's direction. Technically, the bearish  bias persists in the short term as in the 1 hour chart, the price was rejected from a bearish 20 SMA, while the technical indicators develop within negative territory, although with limited downward strength, given that the price has been consolidating in a tight range for most of the US session. In the 4 hours chart, the price is well below a bearish 20 SMA, whilst the Momentum indicator turned modestly lower around its 100 level and the RSI indicator heads south around 34, supporting some further slides for this Friday.

Support levels: 1.2935 1.2900 1.2870

Resistance levels: 1.2985 1.3020 1.3060

USD/JPY Current price: 101.93

View Live Chart for the USD/JPY

After trading in a tight range ever since the day started, the USD/JPY pair jumped to fresh daily highs near 102.00 in the American afternoon, as Wall Street jumped to near its recent record highs, also underpinned by FED's Williams, who said that it is still appropriate to raise rates this year. The pair however, remains a handful of pips below its weekly opening, having been confined to a tight 120 pips range ever since the day started. In the short term, the 1 hour chart shows that the price has accelerated through its 100 and 200 SMAs, whilst the technical indicators head sharply higher nearing overbought territory. In the 4 hours chart,  the upward potential seems limited, given that the price is well below its 100 and 200 SMAs, both converging around 103.40, whilst the technical indicators have extended their recovery from oversold levels, but remain below their midlines. The weekly high has been established at 102.65 the level to surpass to see further recoveries, up to the mentioned 103.40 price zone.

Support levels: 101.40 101.00 100.65

Resistance levels: 102.35 102.65 103.00

AUD/USD Current price: 0.7701

View Live Chart for the AUD/USD

The AUD/USD pair was unable to hold on to its latest gains, retreating down to the current 0.7700 region. During the past Asian session, the  RBNZ delivered a 25bps cut in the cash rate and the NZD rallied initially, as the decision was short of market expectations, but ended up reversing course as the day went by, dragging Aussie alongside. Renewed dollar's demand in the US afternoon after FED's William revive hopes for a rate hike in the US this year. Still, the Australian dollar is far from entering a bearish trend in the mid to long term, still looking to retest its year high against the greenback or even extend higher. In the short term, the 1 hour chart shows that the price is hovering below a horizontal 20 SMA, while the technical indicators have turned modestly lower within neutral territory, supporting further downward corrections on a break below 0.7691, the daily low. In the 4 hours chart, the 20 SMA maintains a strong upward slope well below the current level, whilst the technical indicators have retreated from overbought levels, maintaining bearish slopes, but within positive territory, supporting also a downward corrective move but far from suggesting a continued bearish move.

Support levels: 0.7690 0.7660 0.7630

Resistance levels: 0.7760 0.7795 0.7830