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The euro has moved to yet another 2017 trading high against the U.S dollar, hitting 1.1986 in late Monday trading, with price edging ever closer to the psychological 1.20 level.

In early Tuesday trading, the EURUSD pair is trading around the 1.1970 region, finding support from 1.1955 level. The single currency now looks poised to move above for the key 1.20 level, for the first time since December 2014.

EURUSD traders should pay close attention to the continuing decline in the greenback, with the U.S dollar index now approaching historical support from the 91.62 level, which represents the ten-year time frame, 20 period moving average.

Key intraday technical resistance is found at the psychological 1.2000 level, with the 50 percent Fibonacci retracement of the all-time EURUSD price high to low, at 1.2030. The July 2012 monthly swing price low, also adds strong resistance, at 1.2041.

The daily pivot point offers support, at 1.1960, as does the former EURUSD swing price high, at 1.1910.

Daily Pivots: (S1) 140.66; (P) 141.04; (R1) 141.64; More

GBP/JPY is staying in consolidation above 139.29 temporary low and intraday bias remains neutral. Near term outlook stays bearish as long as 143.18 resistance holds and deeper decline is in favor. Below 139.29 will target 135.58 key support level. At this point, price actions from 148.42 are seen as a sideway consolidation pattern. Hence, we'll expect strong support from 135.58 to contain downside and bring rebound. Meanwhile, break of 143.18 will indicate short term reversal and turn bias back to the upside.

In the bigger picture, the sideway pattern from 148.42 is extending with another leg. We'd expect strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside. Medium term rise from 122.36 is still expected to resume later. And break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. However, firm break of 135.58/39 will dampen the bullish view and turn focus back to 122.36 low.

From a data perspective, Tuesday has only a small handful of releases that could impact the financial markets. That will change in a hurry on Wednesday and for the remainder of the week leading up to the penultimate US nonfarm payrolls on Friday.

The first major report of the day will be released at 06:00 GMT when GfK reports on German consumer confidence. The forward-looking indicator is expected to remain unchanged for the month of September.

Later in the European morning, France will unveil revised second quarter GDP data, as well as the latest consumer spending figures.

In North America, Statistics Canada will report on industrial production at 12:30 GMT. The report could provide some direction for the Canadian dollar.

A half hour later, Standard & Poor's will release the S&P/Case-Shiller Home Prices Indices. The monthly indicator provides a snapshot of housing market conditions in the world's largest economy. Analysts are projecting year-over-year growth of 5.7%, following an identical increase the previous month.

Energy traders will also be keeping tabs on the American Petroleum Institute's weekly crude oil report, which will make its way through the financial markets at 20:30 GMT. The official inventory report courtesy of the US Energy Information Administration (EIA) will be unveiled the following morning.

The US dollar index plunged to 19-month lows on Monday, as the euro climbed to its highest level since January 2015. The dollar index (DXY), an exchange-weighted average of the greenback against a basket of six currencies, settled at 92.21 on Monday.

EUR/USD

The euro's dramatic rally reached a higher level on Monday, with the EUR/USD setting a new 31-month high. The pair came within a mere 18 pips of the all-important 1.20 level and was last seen trading at 1.1968. The common currency has broken sharply to the upside, and is testing immediate resistance at the psychological 1.20 barrier. Above that level, traders are eyeing the July 2012 high of 1.2042. On the opposite side of the spectrum, support lies at 1.1960, followed by the daily low of 1.1915.

GBP/USD

The British pound also participated in the uptrend on Monday. Cable was last seen trading near multiweek highs at 1.2938. The pair is trading above the 55-day moving average of 1.2929. Over the medium term, prices are expected to face downward pressure. Immediate resistance sits at 1.3126, according to analysts at Commerzbank. On the flipside, the 1.2775 provides a strong support zone.

GOLD

A weak dollar triggered a massive rally in precious metals on Monday, with gold prices reaching their highest level since September 2016. Bullion continued higher in the Asian session, where it approached $1,320.00 a troy ounce. Risk sentiment will continue to bolster precious metals in the medium term.

Daily Pivots: (S1) 130.22; (P) 130.60; (R1) 131.22; More...

Intraday bias in EUR/JPY remains on the upside for 131.39 high. Correction from 131.39 has completed at 127.55 already, after hitting 55 day EMA. Firm break of 131.39 will resume larger rally and target 61.8% projection of 122.39 to 131.39 from 127.55 at 133.11 next. On the downside, below 129.10 minor support will dampen this bullish view and turn focus back to 127.55 support instead.

In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. Further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. Medium term outlook will remain bullish as long as 124.08 resistance turned support holds. However, firm break of 124.08 will argue that rise from 109.03 is completed and turn outlook bearish.

EUR/USD

Current level - 1.1988

The uptrend is absolutely intact, heading towards 1.2040, en route to 1.2160 area. Key static support lies at 1.1909.

USD/JPY

Current level - 108.85

The bias is bearish below 109.00 minor resistance, for a slide towards 108.10, en route to 107.00 area. Crucial on the upside is 109.40.

GBP/USD

Current level - 1.2945

My outlook here remains bullish, for a rise towards 1.3050, en route to 1.3160. Key support is projected at 1.2846.

Key Highlights

• The British Pound after declining towards 139.50 against the Japanese Yen found support.
• The GBPJPY pair broke a major bearish trend line at 140.20 on the 4-hours chart to initiate a recovery.
• Japan's Unemployment Rate remained at 2.8% in July 2017.
• The Jobs to application ratio in July 2017 increased from the last reading of 1.51 to 1.52.

GBP/JPY Technical Analysis

The British Pound declined heavily during the past few weeks and traded as low as 139.32 against the Japanese Yen. The GBP/JPY pair is currently recovering and might trade towards 141.70-142.00.

After trading as low as 139.32, the pair started correcting higher. During the upside move, it broke a major bearish trend line at 140.20 on the 4-hours chart. The pair also climbed above the 38.2% Fib retracement level of the last decline from the 143.18 high to 139.32 low.

An ascending channel with support at 140.20 is forming, which could take the pair higher. On the upside, an initial hurdle is near the 50% Fib retracement level of the last decline from the 143.18 high to 139.32 low.

Above 141.25, the channel resistance at 141.70 is positioned with the 100 simple moving average (H4). Therefore, it the pair extend gains, it is likely to face strong offers near 141.70 or 142.00. On the downside, the channel support at 140.20 is a key buy zone.

Japan's Unemployment Rate

Japan today saw the release of the Unemployment data for July 2017. The Unemployment Rate for July 2017 from the Ministry of Health, Labour and welfare (published by the Japan Statistics Bureau) posted no change from the last 2.8%.

On the other hand, the Jobs to application ratio in July 2017 rose from the last reading of 1.51 to 1.52. Looking at the number of employed persons in July 2017, there was a rise of 590 thousand (+0.9%) in the count to 65.63 million compared with the same month a year ago.

Furthermore, the number of unemployed persons in July 2017 were down by 120 thousand (5.9%) to 1.91 million compared with the same month a year ago.

Overall, there are chances of GBP/JPY moving higher towards 141.70 as long as the 140.20 support is intact.

Daily Pivots: (S1) 0.9238; (P) 0.9252; (R1) 0.9276; More

EUR/GBP's rally is still in progress and intraday bias stays on the upside for 0.9304 key resistance. We'd remain cautious on rejection from 0.9304 to extend the medium term consolidation pattern. Break of 0.9184 will turn bias back to the downside for pull back to 55 day EMA (now at 0.8959). However, sustained break of 0.9304 will confirm up trend resumption and pave the way to 0.9799.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It's uncertain whether it is finished yet. But in case of another fall, we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside and bring rebound. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes. Firm break of 0.9799 high will target 61.8% projection of 0.5680 to 0.9799 from 0.6935 at 1.1054.

Daily Pivots: (S1) 1.5003; (P) 1.5034; (R1) 1.5069; More...

EUR/AUD's rally continues today and reaches as high as 1.5151 so far. The break of 1.5073 resistance affirmed our bullish view that correction from 1.5226 has completed with three waves down to 1.4421. Intraday bias stays on the upside for retesting 1.5226 first. Break there will resume whole rebound from 1.3624 and target 61.8% projection of 1.3624 to 1.5226 from 1.4421 at 1.5411 next. On the downside, below 1.4998 minor support will turn intraday bias neutral first.

In the bigger picture, we're holding on to the view that corrective decline from 1.6587 medium term has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. The corrective structure of the fall from 1.5226 is affirming this view. Above 1.5226 will target a test on 1.6587 key resistance. However, break of 1.4421 will dampen our view and would drag EUR/AUD lower to retest key support zone around 1.3624.

USDJPY (108.79): The USDJPY slipped past 109.15 support earlier today. The declines came on the news report of the North Korea's missile launch. The price fell to lows of 108.32 before pulling back. The breakdown below 109.15 could, however, suggest further declines in USDJPY. A retest of 109.15 as resistance could confirm this move as the next support near 108.00 could be inevitably tested. However, the fact that USDJPY has been strongly consolidating near 109.15 - 108.20 levels could suggest a near-term bottoming pattern being formed.

GBPUSD (1.2936): The British pound was seen posting gains for a second consecutive day. Price action gapped higher on yesterday's open but briefly pulled back to test Friday's close. Further upside is expected in the cable which could now be heading towards the resistance level of 1.3033. With the resistance level of 1.2908 being cleared, any pullback is likely to be limited at this level. A retest of support at 1.2908 will confirm the upside towards 1.3033 level. However, in the event that the support at 1.2908 fails to contain prices we could expect to see some near-term downside.