EUR/USD - Euro bulls managed to launch a successful counterattack against the dollar longs and quickly pushed the pair above the 1.1800 handle during the latest bout of dollar bearishness. A further move to the upside will most likely see the pair head higher and test the dollar defenses around 1.1867, a level established by the July 5 daily low and reinforced by the 23.6 fib of the 1.2588-1.1639 EUR rally. A further move to the upside will most likely see the single currency bulls push their way toward the psychologically important 1.2000 handle, a level that is being defended by the combination of the 50-day SMA at 1.1986 and a key 38.2 Fib of the 1.2588-1.1639 EUR rally at 1.2001.  Indicators are favoring dollar longs with both momentum indicator and negative MACD below the zero line, while oversold Stochastic gives the euro bulls a chance to retaliate.

USD/JPY - Japanese Yen longs continued to press with their counterstrike against the greenback longs as the pair tumbled below the 119.00 handle. A further move by the yen longs will most likely see the pair head toward the 118.00 figure, and with a break to the downside most likely seeing the yen long push their way toward the 117.46, a level defended by the 20-day SMA. A sustained momentum to the downside will most likely see the yen bulls test the dollar bids around 116.87, a level established by the November 8 daily low. Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 at 43.20 signaling an existence of a maturing trend not a direction of one, while overbought Stochastic and RSI gives the yen longs a chance to retaliate and retrace part of the dollar rally.

GBP/USD - British pound bulls once again pushed the dollar bulls above the 1.7200 handle after the dollar longs failed to sustained momentum to the downside following the break below the 1.7284, a level marked previous 2005 Low. In case the cable longs manage to sustain the momentum of their initial advance and push the pair higher, a move deeper into the dollar held territory will most likely see the pair head higher and aim for the dollar defenses below the 1.7400 handle at 1.7393, a level marked by the October 12 daily low.  Indicators are favoring dollar longs with both momentum indicator and negative MACD below the zero line, while extremely overbought Stochastic gives the sterling longs a chance to retaliate.

USD/CHF - Swiss Franc longs followed its European counterparts in a massive counterattack against the advancing dollar longs and managed to push greenback longs back below the 1.3100 handle.  A further move to the downside will most likely see Swissie bulls test the dollar bids around 1.3045, a level established by the October 3, 2003 daily high, which currently acts as a gateway toward the psychologically important 1.3000 handle. A sustained momentum to the downside will most likely see the Swiss Franc longs push their way below 1.3000 and take on the greenback defenses around 1.2929, a level marked by the October 31 daily high. Indicators remains in favor of the dollar longs with both momentum indicator and positive MACD above the zero line, while overbought Stochastic gives the Swissie longs a chance to retaliate.

USD/CAD - Canadian dollar bulls once again repelled the advance launched by the US dollar longs and pushed the pair towards 1 .1853, a level marked by the 23.6 Fib of the 1.2730-1.1592 CAD rally. A retaliation on the part of the greenback longs will most likely se the pair break above the 1.2000 figure and test Loonie's defenses around 1.2027, a level established by the 38.2 Fib of the 1.2730-1.1592 CAD rally, thus seeing the Loonie bulls give up the control to the psychologically important 1.2000 handle. A further collapse of the Canadian dollar defenses will most likely see the greenback take on the Loonie offers around 1.2159, a 50.0 Fib of the 1.2730-1.1592 CAD rally. Indicators are favoring dollar longs with both momentum indicator and positive MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/USD - Australian dollar bulls managed to launch a decisive counterattack against the greenback longs and pushed the pair further above the .7300 handle. A further move to the upside will most likely see the pair head higher and test the US dollar defenses around .7385, a level established by the 23.6 fib of the .7798-7267 USD rally. A sustained momentum on the part of the Aussie longs will most likely see the pair test the greenback bids around .7458, a level marked by the 38.2 Fib of the .7798-7267 USD rally. Indicators are signaling trading conditions with ADX above 25 at 33.36, signaling an existence of a trend, not a direction of one, while both momentum indicator and negative MACD remain below the zero line, with oversold Stochastic adding to the trending outlook.

NZD/USD - New Zealand dollar followed its antipodean neighbor during the latest attack aimed against the greenback forces. As Kiwi longs continued to press their luck and push the pair higher, a further move to the upside will most likely see New Zealand dollar bulls push the pair toward .6930, a level established by the October 19 daily low. A sustained momentum on the part of the Kiwi longs will most likely see the pair head higher and test the greenback defenses around .6984, a level marked by the 38.2 Fib of the .7468-.6681 USD rally, which currently acts as a gateway to the psychologically important .7000 handle. Indicators are signaling trading conditions with ADX above 25 at 25.04, signaling an existence of a trend, not a direction of one, while both momentum indicator and negative MACD remain below the zero line, with neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.