EUR/JPY - Euro bulls saw the earth part beneath their feet as the cross tumbled from its multi year highs and broke below the channel's lower boundary along with psychologically important 140.00 handle. As yen traders consolidate their recent gains, a further move to the downside will most likely see the pair head lower and test the single currency bids around 138.22, a level established by the December 16, daily low and is further reinforced by the key 38.2 Fib of the 130.62-141.61 EUR rally. As euro traders give up further bids, a sustained momentum on the part of the Japanese yen bulls will most likely see the cross give up more ground and head toward 137.11, a 50.0 Fib of the 130.62-141.61 EUR rally. As euro longs give up more ground to the yen counterpart, a further collapse of the single currency bids will most likely see the EUR/JPY aim toward the psychologically important 135.00 handle, a level protected by the 61.8 Fib of the 130.62-141.61 EUR rally at 135.58. Indicators are signaling trending conditions with ADX above 25 at 30.42, while indicators are mixed with momentum indicator below the zero line and positive MACD sloping downward toward the zero line, with both neutral oscillators give either side enough room to maneuver.

EUR/CHF - Euro remains confined to a large triangle that dominated the price action since the middle of June with the cross currently testing the upper boundary around the psychologically important 1.5500 handle. A failure to break above the triangle's upper boundary will most likely see the cross reverse direction and head lower, with a swing to the downside most likely seeing EUR/CHF head lower and test the euro bids around 1.5416, a level established by the October 24 daily low. A further collapse of the single currency bids will most likely see the cross head lower and take on 1.5372, a 50.0 Fib of the 1.5079-1.5661 EUR rally, and with sustained momentum seeing the cross test the bids around 1.5302, a key 61.8 Fib of the 1.5079-1.5661 EUR rally. Indicators are diverging with momentum indicator above the zero line and negative MACD sloping upward below the zero line, while neutral oscillators give either side to maneuver.

EUR/GBP - Euro continues to trade within a large triangle that dominated the price action since the middle of June with the latest swing o the upside taking on the offers around the .6800 figure, a level established by the 38.2 Fib of the .7106-.6609 GBP rally. A move to the upside will most likely see the euro traders sweep clean the pound stops above thus seeing the upside momentum accelerate with the cross heading toward .6858, a level established by 50.0 Fib of the .7106-.6609 GBP rally. A further move to the upside will most likely see EUR/GBP head higher and with sustained momentum take on the sterling offers around .6917, a level marked by 50.0 Fib of the .7106-.6609 GBP rally. Indicators are favoring pound longs with both momentum indicator and negative MACD treading below the zero line, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.