EUR/USD - Euro bulls failed to maintain the initial momentum of their counterattack and quickly retreated below the 1.1800 handle. Another attempt to push the pair above the 1.1800 figure will most likely see the single currency 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 tread sideways as the pair remained above the 119.00 handle. A break below 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 117.67, 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 42.93 signaling an existence of a maturing trend, not a direction of one, while overbought Stochastic gives the yen longs a chance to retaliate and retrace part of the dollar rally.

GBP/USD - British pound bulls once again found themselves on the wrong side of the trade as greenback longs pushed the pair below the 1.7200 handle. In case the cable longs manage to retaliate 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. However a failure by the cable longs to launch a successful counterattack will most likely see the pair head toward the 1.7086, a level established by the November 20, 2003 daily high, and with a break to the downside seeing the pair break below the psychologically important 1.7000 handle. 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 failed to follow through with their counter attack and once again found themselves below the 1.3200 handle.  Another attempt to push the pair 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 pushed their US dollar counterparts around as greenback longs retreated below the 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 head toward the 1.2000 figure and with a break to the upside testing Loonie's defenses around 1.2027, a level established by the 38.2 Fib of the 1.2730-1.1592 CAD rally. 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 continued to tread sideways after their initial attack failed to break through the US dollar defenses around .7385, a level established by the 23.6 fib of the .7798-7267 USD rally. In case the Aussie longs decide to once again test their luck and attempt capturing the .7400 handle, a break above .7385 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 30.58, 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 once again failed to challenge the greenback defenses as the pair remained confined to a narrow trading range by the 20-day SMA at .6896. As Kiwi longs once again attempt to push the pair above the .6900 figure, 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 remaining in favor of the US dollar bulls with both momentum indicator and negative MACD remain below the zero line, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.