EUR/AUD - Euro bulls continued to fiercely defend their territory from the advancing Australian dollar longs as the price action remained confined to a narrow trading range. As Aussie longs break euro's defenses and push the cross further 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 failed to stall the advance of the attacking Canadian dollar longs as the price action remained in favor of the Loonie bulls. As CAD longs continue to push deeper into the euro held territory, a further move to the downside will most likely see the cross test the single currency defenses around 1.3856, a level established by the March 20, 2002 daily spike low. A further move to the downside will most likely see the cross test the euro bids around 1.3512, a level marked by the 78.6 Fib of the 1.2569-1.6978 EUR rally and is currently acting as a gateway toward the psychologically important 1.3500 handle. Indicators signal trendless market conditions with ADX below 25, while both MACD and momentum indicator treading below 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 push the cross below the psychologically important 1.7000 handle and test the euro's defenses around 1.6820, a level established by the May 15, 2002 daily. A further breakdown of 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.