EUR/AUD ââ,¬â€œ EUR/AUD continues to trade within a range bound primarily by the 20 SMA as resistance and the 50 SMA as support at 1.6658-1.6530.  The 4/26 low at 1.6500 made a double bottom with the 4/12 and 4/13 lows at 1.6500/05.  The bullish formation is bolstered by DMI + about to cross DMI -.  The rally from the 1.6500 low has led to overbought oscillators on the hourly and some correction is warranted.  Initial support is at the 38.2% fibo of 1.5609-1.7109at 1.6538 followed by the mentioned 1.6500 figure.  A break below negates the bullish implications from the double bottom and targets the 50% fibo of the bull wave from 1.5609 at 1.6359.

EUR/CAD ââ,¬â€œ EUR/CAD has also ranged the past week and currently trades right at its 40 week moving average.  A weekly close above there would give bulls the ammunition needed to challenge the previous high of 1.4362 made on 4/4.  The weekly and daily charts both show a long term inverse head and shoulders (LS, H, RS) reversal pattern that has been forming since September 2005.  The right shoulder is higher than that of the left, which is an indication of strength.  Also, the neckline intersects with the 40 week SMA at current levels.  As mentioned, a weekly close above the 40 SMA / neckline exposes the 4/4 high at 1.4362.  A failure results in the pair falling back into the range with the 50% fibo of 1.3837-1.4147 at 1.3992 as initial support.

EUR/NZD ââ,¬â€œ EUR/NZD strengthened the past week after holding above the 1.9400 figure with lows on 4/19, 4/20, 4/21, and 4/26 at 1.9400, 1.9434, 1.9406, and 1.9426.  The pair has since rocketed skyward past 1.9800.  The recent decline from the 2.0229 high on 4/4 was choppy and slow ââ,¬â€œ and ultimately corrective in nature.  On the other hand, the rally that began on Monday has been quick and impulsive; suggesting the path of least resistance is up.  Resistance comes in at the 4/25 high at 1.9952 with a break targeting the 76.4% fibo of 2.0221-1.9329 at 2.0009.  Weakness probes yesterdayââ,¬â"¢s low at 1.9616.

Jamie Saettele is a Technical Currency Analyst for FXCM.