EUR/AUD - Euro remains confined within a large channel that dominated the price action since September with the latest swing to the downside to testing the bids around 1.6047, a level defended by the combination of 23.6 Fib of the 1.7712-.5532 AUD rally, a 200-day SMA a 50-day SMA and 20-day SMA. A breakdown of the level of such magnitude will most likely see the cross head lower and test the bids around 1.5895, a level established by the November 11 daily low. A further move to the downside will most likely see the EUR/AUD head lower and with a confirmed break below 1.5757, a level established by the September 20 daily low, most likely seeing the cross target the euro bids around 1.5598, a level established by the October 4 daily low. A sustained momentum on the part of the Aussie bulls will most likely see EUR/AUD aim for the single currency bids around 1.5534, a level created by the 2005 Low and is currently acting as a gateway toward the psychologically important 1.5500 handle. Indicators are favoring Australian dollar longs with both negative momentum indicator and MACD treading below the zero line, while neutral oscillators give either side enough room to maneuver.

EUR/CAD - Euro bulls continued to keep the cross in a narrow trading range as price action stalled around 20-day SMA at 1.3758. As Loonie longs resume their advance, a further move to the downside will most likely see the EUR/CAD head lower and take on the single currency bids around 1.3512, a level established by the 78.6 Fib of the 1.2569-1.6978 EUR rally, and with a move below the psychologically important 1.3500 handle aiming for 1.3313, a level marked by the December 13, 2000 daily low. A sustained momentum on the part of the Canadian dollar bulls most likely seeing the cross head lower and target the bids around 1.3010, a level not seen since July 17, 2001, and is acting as a gateway toward the psychologically important 1.3000 handle. Indicators are favoring the Canadian dollar longs, with both negative momentum indicator and MACD below the zero line, while oversold Stochastic gives euro longs a chance to retaliate.

EUR/NZD - Euro longs failed to push the cross higher after the latest swing to the upside failed to break above 1.8046, a level established by the 61.8 Fib of the 1.9160-1.6240 EUR rally. A reversal and a further move to the downside will most likely see New Zealand dollar bulls push the cross further below the psychologically important 1.8000 handle and aim for the single currency bids around 1.7702, a level marked by the 50.0 Fib of the 1.9160-1.6240 EUR rally and is further reinforced by the 20-day and 50-day SMA's. A sustained momentum on the part of the Kiwi traders will most likely see the EUR/NZD head lower and target the next psychologically important level at 1.7500, a level protected by 200-daty SMA at 1.7429. A further advance by the New Zealand dollar bulls will most likely see the cross head lower and target the euro defenses around psychologically important 1.7000 handle, a level defended by the 23.6 Fib of the 1.9160-1.6240 EUR rally at 1.6932. Indicators are favoring the Euro longs, with both positive momentum indicator and MACD treading above the zero line, with neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.