EUR/JPY - Euro bulls once again tested the Japanese yen defenses above the 138.00 handle during the latest assault launched by the single currency longs. As euro bulls consolidate their recent gains, a failure to push above the 138.40, a level marked by the key 78.6 Fib of the 140.51-130.68 JPY rally will most likely see the Japanese yen bulls launch a counterattack and push the cross below the 138.00 figure. A sustained momentum on the part of the yen bulls will most likely see the cross take on the euro defenses around 136.73, a level marked by the 61.8 Fib of the 140.51-130.68 JPY rally. A further collapse of the euro defenses will most likely see the yen longs make their way toward the 135.57, a 50.0 Fib of the 140.51-130.68 JPY rally and a gateway to the psychologically important 135.00 handle. Indicators favor the euro longs with both the momentum indicator and positive MACD treading above the zero line. Stochastic is treading above the overbought line thus giving the yen longs a chance to retaliate.  

Key Levels & Technical Indicators

EUR/CHF - Euro longs continued to gain ground against the Swiss Franc longs, but failed to gain momentum above the psychologically important 1.5500 handle as the level is currently defended by the 23.6 Fib of the 1.5079-1.5661 EUR rally. A break above the Swissie defenses will most likely see the euro bulls push their way toward the triangle's upper boundary, however a failure to break above will most likely see the Swiss Franc longs takeover the price action and push the cross back toward the 1.5500 handle. Indicators are mixed with momentum indicator below the zero line, while positive MACD is sloping downward toward the zero line, with neutral oscillators giving either side enough room to maneuver.

Key Levels & Technical Indicators

EUR/GBP - British pound bulls remained opposed to the euro longs as the cross continued to trade within a tight trading range that dominated last weeks action. As both side continue to measure each other's defenses, a move above the .6857, a level marked by the 50.0 Fib of the .7105-.6609 GBP rally will most likely see the cross break above the triangle's upper boundary and take on the cable offers around .6916, a 61.8 Fib of the .7105-.6609 GBP rally. A further break to the upside will most likely see the euro bulls push their way toward .6968, a level marked by an August 5 daily high, which currently acts as a gateway toward the psychologically important .7000 handle. Indicators are favoring the euro longs with both momentum indicator and positive MACD treading above the zero line, with overbought Stochastic adding validity to the pound led advance.

Key Levels & Technical Indicators

Chart of the Moment

Sam Shenker is a Technical Currency Analyst for FXCM.