EUR/AUD - Euro defenses fell like a house of cards under a massive counter attack by the Australian dollar longs following an inability by the single currency longs tried to break above the triangle's upper boundary. As Aussie longs push the cross back below the 1.6045, a level marked by the 23.6 Fib of the 1.7712-1.5532 AUD rally, which currently acts as a gateway toward the psychologically important 1.6000 handle, their next move to the downside will most likely see the cross tumble toward the 1.5875, a level established by the October 20 daily low. A further move to the downside will most likely see the cross head lower and take on the euro's defenses around 1.5722, a level established be the July 22 daily low. Indicators signal trendless market conditions with ADX below 25, while both MACD and momentum indicator treading above the zero line. Oscillators remain in a neutral territory thus giving either side enough room to maneuver.

EUR/CAD - Euro longs managed to stall the advance of the attacking Canadian dollar longs as the price action remained confined to a narrow wedge, breaking of which will most likely see the euro bulls reestablish their dominance over the price action. As single currency longs push their way above the psychologically important 1.4000 handle, a further move to the upside will most likely see the cross head toward the Loonie defenses around 1.4262, 61.8 Fib of the 1.2569-1.6978 EUR rally. A further collapse of the Canadian dollar defenses will most likely see the cross head toward the 1.4520, a level marked by the August 31 daily low and psychologically important 1.4500 handle, with sustained momentum to the upside most likely seeing the euro bulldoze its way toward 1.4773, a level marked by the 50.0 Fib of the 1.2569-1.6978 EUR rally. Indicators signal trendless market conditions with ADX below 25, while both MACD and momentum indicator treading above the zero line. Oscillators remain in a neutral territory thus giving either side enough room to maneuver.

EUR/NZD - Euro longs continued to retreat as New Zealand dollar bulls kept the cross confined to a price channel that dominated the price action since the middle of July. As cross remains confined to a downward sloping channel, a further move to the downside will most likely see the Kiwi bulls test the euro's defenses around 1.6820, a level established by the May 15, 2002 daily, thus seeing the cross break below the psychologically important 1.7000 handle. A further collapse in the single currency defenses will most likely see the New Zealand dollar bulls push their way toward the 1.6652, a level marked by the 61.8 Fib Extension of the Jan-Jun NZD rally. Indicators are diverging, with momentum indicator below the zero line and MACD sloping downward toward the zero line, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.