Euro Crosses Continue Higher, but Rally Looks Tired

EURJPY EURCHF EURGBP [IMG]http://www.dailyfx.com/export/sites/dailyfx/story-images/2007/10/currency_crosses/Crosses/10-08-07cross1.gif[/IMG] [IMG]http://www.dailyfx.com/export/sites/dailyfx/story-images/2007/10/currency_crosses/Crosses/10-08-07cross2.gif[/IMG] Commentary - The EURJPY has challenged and surpassed what we thought was going to be solid resistance at 165.00 (100% ext. of 149.25-159.67/154.53). We still expect that a larger correction is unfolding from the 7/13 high of 168.94. The correction could be either a flat or a zigzag. In the case of the former, the pair will challenge and maybe even exceed 168.94 before a top and vicious reversal. In the case of the latter, price will top near current levels and begin a choppy decline. Strategy - Flat [IMG]http://www.dailyfx.com/export/sites/dailyfx/story-images/2007/10/currency_crosses/Crosses/10-08-07cross3.gif[/IMG] Commentary - The EURCHF is testing the upper end of its multi month range. Selling pressure at the top of the range may lead to a setback with support at 1.6592. This decline will likely unfold as a 4th wave within a 5 wave bull cycle from 1.6175. This means that we do expect a new high (above 1.6686) eventually. Strategy - Flat [IMG]http://www.dailyfx.com/export/sites/dailyfx/story-images/2007/10/currency_crosses/Crosses/10-08-07cross4.gif[/IMG] Commentary - It remains our contentin that the "EURGBP is most likely headed for a test of the 2003 high at .7254 in the next few months. A bullish objective is at the 161.8% ext. of .6535-.6867/.6679 at .7216. The longer term bullish structure is strong as long as price is above .6826 (although the pair is unlikely to come close to there)." Strategy - Remain bullish, against .6826, target .7200