EUR/JPY - Euro bulls continued to bounce in a trading range as EUR/JPY failed to head higher with single currency traders retaining the bids above the psychologically important 140.00 handle. As euro bulls remain in charge of the price action, a further move to the upside will most likely see EUR/JPY test the yen offers around 142.80, a level established by the December 6 daily high and with sustained move to the upside extending its rally toward 143.57, a level marked by the 1.00 Fib Extension of the January EUR rally. A further move to the upside will most likely see the single currency traders push the cross toward the next psychologically important 145.00 handle, a level defended by the 1.236 Fib Extension of the January EUR rally, thus seeing the cross set a new multi-year high. Indicators are mixed with positive momentum indicator diverging from negative MACD below the zero line, with overbought Stochastic giving yen longs a chance to retaliate.

EUR/CHF - Euro bulls continued to challenge Swiss Franc offers above the 1.5700 figure as cross broke above the large trading range that dominated the price action since the beginning of 2005. A confirmed break above the range's upper boundary will most likely see the EUR/CHF head higher, and with a move to the upside most likely seeing the cross take on Swiss Franc offers around 1.5756, a level established by the November 10, 2003 daily high. A further collapse of the Swissie offers will most likely see the cross head higher and with a move above the 1.5800 figure take on 1.5815, a level marked by February 13, 2004 daily high. A sustained momentum to the downside will most likely see EUR/CHF test euro's defenses around 1.5888, a level defended by 78.6 Fib of the 1.6291-1.4404 EUR rally. Indicators are favoring euro longs with both momentum indicator and MACD above the zero line, while neutral oscillators giving either side a room to maneuver.

EUR/GBP - Euro continued to push the cross above the large trading range that dominated the price action since the middle of August after single currency bulls collapsed sterling offers around .6916, a level marked by the 61.8 Fib of the .7106-.6609 GBP rally. As cross heads higher, a further move to the upside will most likely see the euro longs take on .6968, a level created by the August 5 daily high. A sustained momentum on the part of the euro longs will most likely see EUR/GBP extend its rally toward the psychologically important .7000 handle, a level defended by the 78.6 Fib of the .7106-.6609 GBP rally, and with a further move to the upside most likely seeing single currency bulls take on the British pound offers around .7039, a level marked by January 17, 2005 daily high, breaking of which will most likely see the cross enter a full trending mode targeting .7500 handle. Indicators are favoring euro longs with both positive momentum indicator and MACD above the zero line, with overbought Stochastic giving sterling longs a chance to retaliate.

Sam Shenker is a Technical Currency Analyst for FXCM.