1. EURJPY
2. EURCHF
3. EURGBP
EURJPY The EURJPY has returned to 150 territory at the upper end of the 2 month 147.54-150.73 range. The consolidation since late August has taken on the form of an ascending triangle which may lead to a break higher. Still, daily CCI is greater than 100, which has historically indicated short term tops. Thus, the risk of a turn lower is high and risk is limited with the proximity of 150.73. The first bearish target would be the 11/2 low at 148.84 but a break above 150.73 exposes the 138.2% of 150.71-147.54 at 151.93.
EURCHF EURCHF is at the top of its recent range as well and may be forming a triple top with the 9/15 and 10/13 highs at 1.5961/65. The point to reference regarding trend in this pair is the 5 month supporting trendline near 1.5871 today (increases about 4 pips per day). It takes a break below there to suggest that the larger trend is down. Additional strength targets the 161.8% fibo of 1.5853-1.5448 at 1.6007. The pair is above the upper Bollinger band on the daily right now, which has indicated reversals in the last few months.
EURGBP The EURGBP continues to test the 2 year 7 month supporting trendline. The pair slipped below the trendline last week and has rallied back to test the other side of the line as resistance. Additional support is at the 6/23/2005 low at .6609. Daily oscillators are divergent with price action, indicating that a bottom may be forming. It takes a break above .6722 in order to instill confidence in the upside.
