EUR/JPY - Euro continues to trade within an upward sloping channel that dominated the price action since the middle of June and finally broke above the consolidation range that kept the cross confined to a wide trading range since the middle of 2003. As euro gains further the more ground and begins to trade in a territory previously unseen by the euro bulls, a further move to the upside will most like see the cross head higher and take on the Japanese yen offers around 142.78, a level established by the 78.6 Fib Extension of the Sep-Nov EUR rally. A sustained momentum to the upside will most likely see the EUR/JPY head higher and take on the yen offers around 144.20, a level marked by the 1.00 Fib Extension of the Sep-Nov EUR rally, with a move above that targeting the psychologically important 145.00 handle. Indicators are signaling trending conditions with ADX above 25 at 28.53, while both momentum indicator and positive MACD treading above the zero line, and both oversold oscillators adding to the trending outlook.

EUR/CHF - Euro bulls launched a countermove and pushed the cross above 1.5440, a level established by the 38.2 Fib of the 1.5079-1.5661 EUR rally and is further reinforced by the 20-day SMA. A further move to the upside will most likely see EUR/CHF head higher and aim for the for the Swissie offers around 1.5524, a level created by the 38.2 Fib of the 1.5079-1.5661 EUR rally, thus seeing the cross break above the psychologically important 1.5500 handle. A sustained momentum to the upside will most likely see the cross test the resistance at 1.5575, a level marked by the October 18 daily high. Indicators are favoring euro longs with momentum indicator and positive MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

EUR/GBP - Euro remains confined to a narrow .6705-.6876 trading range that dominated the price action since the beginning of September. As euro longs gear up and push the cross higher, a move toward the.6800 handle will most likely see the EUR/GBP meet heavy selling from the prospective cable longs as the level is being defended by the combination of the 38.2 Fib of the .7106-.6609 GBP rally, and 20-day, 50-day and 200-day SMA's. A break to the upside will most likely see the euro traders sweep the pound stops above clean thus seeing the upside momentum accelerate with the cross heading toward .6858, a level established by the 50.0 Fib of the 1.5079-1.5661 EUR rally. Indicators are favoring euro longs with both momentum indicator and positive MACD treading above the zero line, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.