EUR/JPY ââ,¬â€œ Daily RSI is above 70 (overbought) for the first time since 2/2 of this year.  That overbought instance led to a 600 pip decline in a 3 week span.  Zooming in to a 240 minute chart ââ,¬â€œ daily RSI has declined from above 70 and the indicator is divergent with the high at 154.15.  A decline below 152.53 instills confidence in the downside to the 61.8% of 150.31-154.15 at 151.78 (an open chart gap also) and the 8/31 high at 150.71.  A break above 154.15 shifts focus to the longer term measured objective at 156.41 ââ,¬â€œ which is the 61.8% extension of waves 1 through 3 (88.69-140.90) from the bottom of wave 5 at 124.14.

EUR/CHF ââ,¬â€œ The impulsive decline from the 11/17 high at 1.6009 has been followed by a 3 wave corrective rally that stalled at the 61.8% of 1.6009-1.5808 at 1.5932.  While potential remains for an extension of strength to the 78.6% at 1.5966, upside risk is limited at the current juncture due to the proximity of 1.6009.  The intraday structure ââ,¬â€œ 5 waves down from 1.6009 followed by 3 waves up to current price suggests an eventual break of 1.5808.

EUR/GBP ââ,¬â€œ The EURGBP has fallen from its 11/16 high at .6794 in 3 waves ââ,¬â€œ which gives scope to a rally that will eventually exceed .6794.  Reinforcing the idea of a rally in the EURGBP is the fact that support held at the 61.8% of .6668-.6794.  This is the sign of a healthy Elliott Wave relationship.  Price must remain above .6668 for the bullish pattern to remain intact.  Resistance prior to .6794 is the 11/21 low at .6742.

Jamie Saettele is a Technical Currency Analyst for FXCM.