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

EUR/JPY - Euro bulls remained trapped in the narrow trading range that confined the pair between the rock and the hard place as cross made a little progress below the psychologically important 135.00 level. A break below the triangle's lower boundary will most likely see the euro bulls tumble toward 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 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. A sustained momentum on the part of the Japanese yen longs will most likely see the euro bulls continue to retreat toward the psychologically important 130.00 handle. Indicators are diverging with momentum indicator below zero line and MACD sloping downward toward the zero line. Oscillators continue  to tread in a neutral territory thus giving either side enough room to maneuver, while volatility remains high as triangle begins to shrink. 

Key Levels & Technical Indicators

EUR/CHF - Euro longs finally made a decisive move against the Swiss Franc bulls with the cross breaking above the downward sloping channel's upper boundary. As euro bulls continue to challenge Swissie's defenses around the 1.5523, a 23.6 Fib of the 1.5661-1.5079 EUR rally, right above the psychologically important 1.5500 handle, a further move to the upside will have to contend with CHF defenses around 1.5577, a level marked by the April 14 daily spike high, with sustained momentum seeing the euro taking on Swiss Franc defenses around 1.5536, a February 8 daily spike high. Indicators remain in favor of the Swiss Franc bulls with both MACD and momentum indicator below zero line. Stochastic became overbought, giving Swiss Franc longs a chance to retaliate, however most of the prolonged moves to the upside happened after the oscillators became overbought.   

Key Levels & Technical Indicators

EUR/GBP - British pound bulls made little progress as the cross remained confined to a narrow trading range with cable longs failing to break the euro's defenses below the .6710 mark as the level is being defended by the key 23.6 Fib of the 7106-.6609 GBP rally. As euro bulls gather their forces and push the pound through the channel's upper boundary, a sustained breakout will most likely see the euro longs make their way toward the .6800 figure, a level guarded by the 38.2 Fib of the .7106-.6609 GBP rally. A further retreat by the cable longs will most likely see the cross test the offers around .6842, a 50-day SMA, which currently is a first layer of the cable triple defense strategy consisting of the 200-day SMA at .6857 and 50.0Fib of the .7106-.6609 GBP rally at .6558. A breakout 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 27.30 signal 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

Chart of the Moment

Sam Shenker is a Technical Currency Analyst for FXCM.