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EUR/USD increased as the USDX slipped lower in the last hours. Price is fighting hard to climb much higher in the upcoming period, but I'm not sure that will have enough directional energy to do this. Technically, the rate has shown some exhaustion signs, but we still need a confirmation that will drop much deeper in the upcoming period.

It could come higher to retest a resistance level before will drop much deeper again, a corrective phase is still possible as the dollar could be too oversold to drop much deeper.

Euro stays higher even if the Euro-zone data have come in mixed, the Spanish Unemployment Change was reported at 46.4K, much above the 16.3K estimate and versus the -26.9K in the previous reading period, while the PPI increased only by 0.0%, less compared to the 0.1% estimate. Moreover, the Sentix Investor Confidence increased by from 27.7 points to 28.2 points, even if the traders have expected to see a drop to 27.4 points.

EUR/USD increased and could come to retest the upper median line (uml) of the minor ascending pitchfork. A rebound is natural after the false breakdown below the median line (ml) of the minor descending pitchfork. Could be attracted by the confluence area formed at the intersection between the upper median line (uml) with the descending pitchfork's uml. Technically is somehow expected to drop towards the median line (ml) of the minor ascending pitchfork.

Price stays in the buyer's territory but needs a bullish spark to be able to resume the upside movement. It has changed little today and seems a little exhausted, wasn't able to approach and reach the 1.2994 Friday's high. Could retest the 250% Fibonacci line before will climb much higher, is still bullish as long as is trading above this dynamic support.

The near term resistance is at the 1.3046, while the major resistance could be found at the 1.3266 previous high.

EUR/GBP increased and tried to recover after the Friday's drop. Remains to see what will happen because is pressuring the median line (ml) of the minor ascending pitchfork. A valid breakdown will signal a further drop. Has failed to retest the 0.9226 resistance today, but could do this in the upcoming days. Only a valid breakout above the 0.9226 and above the warning line (wl4) will confirm a further increase.

The EURUSD pair has reclaimed the 1.1900 level, after falling to 1.1850 on Friday, following a report from a from a source close to the ECB, stating that the European Central Bank may not be ready reduce QE by December.

So far in early week trading the euro has moved towards its daily and weekly pivot points, around the 1.1918-20 zone, but was swiftly rejected, and now the price-action trades around the 1.1910 level.

The EURUSD pair remains bearish on an intraday basis, while trading below the 1.1920 level. However, the pair remains strongly bullish in the medium and long term while trading above the 1.1665 level.

Key intraday technical resistance is located at 1.1920, 1.1960 and the Friday swing price high, at 1.1979.

To the downside, key intraday support is located at the EURUSD monthly pivot point, at 1.1884. Below 1.1884, the Friday price low adds support, at 1.1850, as does the former weekly price low, at 1.1823.

The British pound has recovered early losses against the U.S dollar, and is trading back at the weekly price open, after the GBPUSD pair fell towards to 1.2928, following weaker than expected UK PMI construction data.

Today's United Kingdom PMI construction figure for the month of August, came in at 51.1, which marked the weakest UK construction PMI reading in over twelve months.

The GBPUSD pair now awaits the return of the U.S markets tomorrow, from U.S Labour day, and crucial UK PMI Services data tomorrow, which is expected to show a decline from the previous months reading.

Key intraday technical resistance is found at the 50-day moving average, at 1.2980, and the monthly pivot point, at 1.2990. Above the 1.2990 level, the 1.3047 level offers strong intraday resistance.

Key intraday technical support is located at the current daily price low, at 1.2928, and the 100-day moving average, at 1.2920. Below 1.2920, the 1.2890 level offers strong support, as does the 1.2852 level.

The DAX index has started the week with small losses. In the Monday session, the DAX is currently trading at 12,123.50, down 0.17% on the day. On the release front, there are no major events on the schedule. Eurozone Sentix Investor Confidence climbed to 28.2, above the forecast of 27.4 points. Eurozone PPI continues to improve, coming in at 0.0%, short of the estimate of 0.1%.

The eurozone economy continues accelerate, as economic indicators point upwards in the second half of 2017. The Sentix Investor Confidence rose in September, as investors and analysts like what they see from the euro-area economy. Germany, the largest economy in the bloc, continues to look very strong, but other countries such as France and Italy have also posted better numbers in 2017. In August, the German and eurozone manufacturing sectors continued to show strong expansion, buoyed by domestic demand as well as a stronger global economy which has increased demand for German and European exports. A stronger economy has raised questions as to what monetary moves the ECB has planned – will it finally taper its ultra-accommodative monetary policy? The bank's asset purchases program is scheduled to end in December, and analysts expect the ECB to withdraw stimulus in early 2018. Still, the ECB has not provided much guidance as to its plans. ECB President Mario Draghi was mum on monetary policy at last week's meeting of central bankers at Jackson Hole, following the lead of Federal Reserve Chair Janet Yellen. However, the ECB head will not get another free pass this week, as the ECB holds its next policy meeting on Thursday. Any discussion about tapering the ECB's asset purchase program could have a strong effect on the euro's movement.

Global markets are keeping a close eye on key numbers in the US, as the guessing game continues with regard to a rate hike by the Federal Reserve. US employment numbers were unexpectedly soft on Friday, but the dollar shrugged off the weak numbers and managed to post gains against the euro. Nonfarm employment change slowed to 156 thousand, well below the estimate of 180 thousand. This marked a 3-month low. However, with the US labor market still close to capacity (the unemployment rate is just 4.4%), the markets can be forgiving over a softer nonfarm payroll report. Wage growth, or the lack of it, is a more pressing concern. Average Hourly Earnings posted a small gain of 0.1%, missing the estimate of 0.2%. This was down from 0.3% in the previous report, and matched the weakest gain seen in 2017. The lack of wage gains has impacted on inflation levels, which remain well below the Fed's inflation target of 2%. Soft inflation has dampened enthusiasm for a final rate hike in 2o17, with the odds of December increase pegged at just 37%.

AUDJPY is looking increasingly neutral in the short term as the pair continues to consolidate from its 1½-year high of 89.41 set in July. Prices have moved back inside the Ichimoku cloud after finding resistance at the top of the cloud, as well as from the 23.6% Fibonacci retracement level of the June-July upleg from 81.77 to 89.41.

The RSI has dipped back to the 50 neutral level after a brief climb to 59.75 on Friday. The MACD is just about positive with a slightly bullish tilt as it's above the red signal line. Should the pair attempt another upside push, the 23.6% Fibonacci level at 87.60 will likely again act as resistance. Friday's 3½-week high of 87.93 is the next resistance to watch, followed by the previous congestion area of around 88.20. A break above this level would open the way towards the July top of 89.41.

Alternatively, if prices turned lower, immediate support would come from the tenkan-sen line at 86.80. Further losses would bring into view the 38.2% and 50% Fibonacci levels at 86.50 and 85.60 respectively. A breach of the 50% Fibonacci level could accelerate the declines towards the 200-day moving average, currently at 85.38, and the 61.8% Fibonacci level at 84.70. It would also shift the bias to negative as it corresponds with the bottom of the cloud.

In the medium term, the outlook remains bullish given the positively aligned 50- and 200-day moving averages. However, without a successful challenge of July's 1½-year high, the positive outlook would be at risk of turning neutral.

Price retested the 53.03 static resistance and failed once again to close above it. Is trading in the red and seems poised to drop towards fresh new lows in the upcoming period. Is moving sideways on the short term, so remains to see if we’ll have a valid breakdown from the minor ascending channel. Could move in range till will reach the WL1, the next major downside target will be at the 50% retracement level.

Price goes down after the false breakout above the 38.2% retracement level and should reach the 23.6% retracement level and the first warning line (WL1) of the ascending pitchfork. Could be attracted by the confluence area formed at the intersection between the WL1 with the upper median line (uml) of the descending pitchfork.

USD/JPY opened with a gap down and seems like that the sellers are very strong on the short term. Price hovers right above a very strong static support, only a valid breakdown will confirm a larger drop in the upcoming period.

The Yen increased significantly today as the Nikkei stock index has plunged. JP225 opened with a gap down today, signaling that the bears have taken full control. The index failed once again to stabilize above the 19700 static resistance, this situation could bring a broader drop in the upcoming period.

Technically, the Nikkei was expected to drop towards the 18936 level on the short term, this scenario is still on the table as long as is trading below the 19700 resistance.

The Yen received support also from the Monetary Base indicator, which was reported at 16.3%, higher versus the 15.6% estimate. You should know that the United States banks will be closed today in observance of the Labor Day.

USD/JPY continues to move in range on the Daily chart, but looks too overbought to resume the minor rebound. Has found strong resistance right above the warning line (wl1) of the ascending pitchfork. A valid breakdown below the 50% retracement level will open the door for a significant drop.

The downside targets are at the 61.8% retracement level, at the long term 38.2% retracement level, could be attracted also by the warning line (WL2).