EUR/USD - Euro bulls gave up more of the previously captured territory as the pair slid below the 1.1800 handle after the greenback longs launched massive counterattack. A further advance by the dollar bulls will most likely see the euro bulls retreat below the 1.1700 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 diverging with positive momentum indicator above the zero line and negative MACD sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.

USD/JPY - Japanese Yen longs continued to put up a futile resistance against the advancing dollar longs as the greenback bulls edged closer to the psychologically important 120.00 handle. A break to the upside will most likely see the dollar bulls push the pair above the psychologically important 120.00 handle, and make their way 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 38.02 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 continued to slide down toward the 1.7200 figure as their latest assault against the dollar bulls failed to gain momentum. As greenback longs manage to push the pair below, a break in the sterling's defenses will most likely see the pair head lower and aim for the pound bids 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 cable's defenses most likely see the pair head lower and test the 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 were in full retreat after falling into a trap set by the dollar longs, which instantly pushed the pair toward the 1.3200 handle. As greenback bulls take an advantage of disarray amongst the Swissie bulls and push the pair toward 1.3244, a level marked by the November 22 daily high, with further move to the upside most likely seeing the pair head higher and take on the Swiss Franc offers around 1.3389, a level established by the October 3, 2003 daily high. A further break in the Swissie defenses 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 continued to test the greenback bids around 1.1643, a level established by the October 27 daily low, but repeatedly failed to break the dollar defenses, thus setting up the pair for a potential reversal.  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 favoring of the Canadian dollar longs with both momentum indicator and negative MACD below the zero line, while oversold Stochastic gives the US dollar bulls a chance to retaliate.

AUD/USD - Australian dollar bulls continued to put a futile struggle as the pair temporarily stopped tumbling around .7383, a level marked by the 23.6 Fib of the .7798-.7267 USD rally. A sustained momentum to the downside 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 diverging with positive momentum indicator above the zero line and negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver maneuver.

NZD/USD - New Zealand dollar bulls continued to fight a loosing battle against their US dollar counterparts as further moves to the upside remained suppressed by the 200-day SMA at .7043. A reversal from these levels will most likely see the pair head lower and with a break below the .7000 figure most likely seeing US dollar bulls make their way toward .6984, a level established by the 38.2 Fib of the .7468-.6681 USD rally. A further break to the downside will most likely see the pair head lower 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.