1. EUR/JPY
2. EUR/CHF
3. EUR/GBP

EUR/JPY - Euro bulls finished their ascent above the 137.00 figure and quickly took the elevator shaft down toward the 135.00 handle after the Japanese yen longs surprised the single currency longs and pushed the cross lower. As the price action continues to change direction and favor the yen longs, a break below the psychologically important 135.00 figure will most likely see the cross take on the euro bids around 134.44, a level marked by the 38.2 Fib of the 140.51-130.68 JPY rally. A further collapse of the single currency defenses will most likely see the EUR/JPY break below the triangle's lower boundary, that dominated the price action since June, and head straight for the 133.00 figure, marked by the 23.6 Fib of the 140.51-130.68 JPY rally thus breaking the 133.53, an August 22 daily spike low. Indicators remain in favor of the Japanese yen bulls with both MACD and momentum indicator below zero line. Oscillators continue  to tread in a neutral territory thus giving either side enough room to maneuver, while volatility remains high as triangle began to shrink.

Key Levels, Technical Indicators & Carry Trade

EUR/CHF - Euro bulls remained on sidelines as the cross continued to consolidate around 1.5438, as it seemed captivated by the power of the key 38.2 Fib of the 1.5661-1.5079 EUR rally. As price action remains in a sideways motion, a break of the channel's upper boundary, that dominated the price action since August will most likely see the euro bulls head higher and take on the Swissie offers around 1.5523, a level located right above the psychologically important 1.5500 handle and defended by the 23.6 Fib of the 1.5661-1.5079 EUR rally. However before the euro longs can retake the 1.5500 figure, they will have to contend with Swiss Franc defenses around 1.5470, a 200-day SMA. Indicators remain in favor of the Swiss Franc bulls with both MACD and momentum indicator below zero line. Oscillators continue  to tread in a neutral territory thus giving either side enough room to maneuver, however ADX is at 29.53, well above the 25 thus signaling trending conditions, not direction of the trend.

Key Levels, Technical Indicators & Carry Trade

EUR/GBP - British pound bulls continued to make their way deeper into the euro held territory as invasion remained supported by the downward sloping channel that dominated the price action since the beginning of August. As euro bulls muster their forces and push the cable forces above the channel's upper boundary, a sustained breakout will most likely see the euro longs push their way toward the .6800 figure, a level guarded by the 38.2 Fib of the .7106-.6609 GBP rally. A further collapse in sterling defenses will most likely see the cross test the offers around .6851, a 20-day SMA, which currently is a first layer of the cable triple defense strategy consisting of the 200-day SMA at .6862 and 50.0Fib of the .7106-.6609 GBP rally at .6558. A breakthrough by the euro longs will most likely see the cross head toward the .6900 figure. Indicators remain in favor of the cable longs with both MACD and momentum indicator below the zero line, which together with ADX above 25, at 27.91 signaling trending conditions. However caution about trending condition should be taken as ADX will most likely continue to decline as pound dominated trend most likely came to an end.  Stochastic continues to signal extremely oversold conditions, which coupled with low volatility raises cautionary flag and adds credibility to a potential reversal.

Key Levels, Technical Indicators & Carry Trade

Sam Shenker is a Technical Currency Analyst for FXCM.