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

EUR/JPY - Euro bulls continued to tread sideways in a narrow trading range that kept the cross bound to the psychologically important 135.00 handle. 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 favoring the Japanese yen longs with momentum indicator and MACD below zero line. Oscillators continue to tread in a neutral territory thus giving either side enough room to maneuver, while volatility fell as range began to shrink. 

Key Levels & Technical Indicators

EUR/CHF - Euro longs remained on a war path as the price action continued to favor the single currency longs as they pushed the cross above the psychologically important 1.5500. As euro longs continue to expand their boundaries a move toward the 1.5828, a level marked by the August 5, 2005 will most likely see the cross head higher and take on the 2005 High at 1.5662. A subsequent reversal will most likely see the EUR/CHF head back toward the 1.5600 figure and with sustained momentum seeing the Swissie longs pushing the euro back toward the 1.5500 figure. Indicators remain in favor of the euro bulls with both MACD and momentum indicator above zero line. Stochastic remains extremely 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 fell back after the cross made little progress and following the inability by the cable longs failing to break the euro's defenses below the .6710 mark a level, marked by the key 23.6 Fib of the 7106-.6609 GBP rally. As euro bulls make their way toward the .6800 figure, a level guarded by the 38.2 Fib of the .7106-.6609 GBP rally, a breakout above 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 50.0 Fib 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 are diverging with momentum indicator above the zero line while MACD is sloping to the upside below the zero line. Oscillators remain in a neutral territory, thus giving either side enough room to maneuver.

Key Levels & Technical Indicators

Chart of the Moment

Sam Shenker is a Technical Currency Analyst for FXCM.