EUR/USD - Euro bulls managed to launch a surprise counterattack against the unsuspecting dollar bulls and pushed the pair briefly above the 1.1900 handle, but failed to sustain the initial momentum and tumbled below the 1.1867, a level established by the November 23 daily high, and is further reinforced by the 23.6 fib of the 1.2588-1.1639 USD rally. A reversal from these levels will most likely see the greenback longs push the euro bulls below the 1.1800 figure and with sustained momentum take on the single currency bids around 1.1682, a level established by the November 28 daily low. A further move to the downside will most likely see the pair tumble below the 1.1600 level and take on the euro's bids around 1.1546, an October 17, 2003 daily low and a gateway toward the psychologically important 1.1500 handle. Indicators are favoring dollar longs with both momentum indicator and negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

USD/JPY - Japanese Yen longs joined the rest of the majors in a massive counterattack, but failed to gain momentum below the 119.00 handle as greenback longs managed to push back the advancing longs. A further move to the upside will most likely see the dollar bulls push the pair above the psychologically important 120.00 handle, and push the pair toward the 120.72, a level marked by the August 1, 2003 daily high. A further collapse of the yen defenses will most likely see the greenback longs make their way toward 121.92, a level established by the March 24, 2003 daily high. Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 at 38.93 signaling an existence of a maturing trend, not a direction of one, while neutral oscillators give either side enough room to maneuver.

GBP/USD - British pound bulls launched a massive assault against the dollar bulls and pushed the pair above the 1.7300 handle only to lose their footing and slide down toward the 1.7200 figure. As greenback longs launch a counterstrike of their own and push the pair below, a break in the cable's defenses will most likely see the pair head lower and aim for the sterling defenses around 1.7061, a level established by the most recent 2005 Low, which currently acts a gateway toward the psychologically important 1.7000 handle. A further collapse of the sterling defenses most likely seeing the pair head toward the pound bids around 1.6877, a level marked by the November 26, 2003 daily low. Indicators are favoring dollar longs with both momentum indicator and negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CHF - Swiss Franc longs answered the call of its European neighbors and attacked the greenback positions head-on, with surprised dollar longs briefly retreating below the psychologically important 1.3000 handle. As greenback longs recover from the shock of the initial attack and push back the Swissie longs, a counterattack on the part of the dollar bulls will most likely see the pair head higher and take on the Swiss Franc defenses around the 1.3244, a level marked by the November 22 daily high. A further move to the upside will most likely see the pair head higher and take on the Swiss Franc offers around 1.3389, a level established by the October 3, 2003 daily high, breaking of which will most likely open the psychologically important 1.3500 handle as a target of opportunity for prospective greenback longs. Indicators remain in favor of the dollar longs with both momentum indicator and positive MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar bulls once again tested the greenback defenses around 1.1643, a level established by the October 27 daily low and following the failure to gain further ground will most likely see the US dollar bulls launch an offensive against the Loonie longs. A reversal from these levels will most likely see the pair head above the 1.1700 figure and with sustained momentum on the part of the greenback bulls see the Canadian dollar retreat toward 1.1781, a level marked by the 50-day SMA. A further move to the upside will most likely see the pair head above the 1.1800 handle and take on the Canadian dollar offers around 1.1857, a level established by the 23.6 Fib of the 1.2730-1.1592 CAD rally. Indicators are diverging with momentum indicator below the zero line and positive MACD sloping downward toward the zero line, while oversold Stochastic gives the US dollar bulls a chance to retaliate.

AUD/USD - Australian dollar bulls showed surprising strength as they pushed their US dollar counterparts above the .7400 handle, but failed to break the greenback defenses around .7457, a level established by the 38.2 Fib of the .7798-7267 USD rally. A subsequent reversal will most likely see the pair head lower and test the Aussie defenses around .7315, a level marked by the November 21 daily low. A further collapse of the Australian dollar defenses will most likely see the pair head lower and test the bids around .7263, a level established by the most recent 2005 Low. A further collapse of the Australian dollar defenses will most likely see the greenback longs take on the Aussie defenses around .7224, a level established by the October 19, 2004 daily low. Indicators are favoring US dollar longs with both momentum indicator and negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver maneuver.

NZD/USD - New Zealand dollar bulls proved to be the stronger antipodean as Kiwi longs once again launched the pair above the psychologically important .7000 handle, thus giving the greenback bulls a great opportunity to initiate shorts at great price levels. A reversal from these levels will most likely see the pair head lower and with a break below the .7000 figure most likely seeing greenback bulls pluck some the Kiwi's feathers as they push their way toward .6984, a level established by the 38.2 Fib of the .7468-.6681 USD rally. A further move to the downside will most likely see the pair tumble further and take on the New Zealand dollar bids around .6930, a level marked by the 50-day SMA, breaking of which will confirm the downward trend. Indicators are diverging with momentum indicator above the zero line and negative MACD sloping upward toward the zero line, while overbought Stochastic gives the US dollar bulls a chance to retaliate.

Sam Shenker is a Technical Currency Analyst for FXCM.