EUR/USD - Euro bulls remained on a the wrong side of the trade as the pair resumed its southbound journey toward the psychologically important 1.1500 handle following the inability of the single currency traders to break above the 1.1800 figure. As greenback longs continue to position themselves for a break below the 1.1700-1.1863 consolidation range, a confirmed close below 1.1639, the most recent 2005 low, will most likely see the pair head lower and test the euro's bids around 1.1546, an October 17, 2003 daily low. A further move to the downside will most likely see the dollar traders push the pair below the psychologically important 1.1500 figure and aim for the 1.1379, a level established by the November 7, 2003 daily low. Indicators are favoring dollar longs with both momentum indicator and negative MACD treading below the zero line, while neutral oscillators give either side enough room to maneuver.

USD/JPY - Japanese Yen remains a trend followers dream come true as the pair broke above the 121.00 handle and is currently showing no signs of weakness.  As an upward momentum remains intact, a further move to upside the will most likely see the pair test the offers around the 121.92, a level marked by the March 24, 2003. A sustained momentum to the upside will most likely see the pair aim for the 123.08, a significant level marked by the 1.50 Fib Extension of the May-July 900 pip USD rally.  Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 at 39.63 signaling an existence of a trend, not a direction of one, while both overbought RSI and Stochastic add to the trending outlook.

GBP/USD - British pound remains in a sideways trading range as the pair failed to break above the 1.7048-1.7349 consolidation range despite increased volatility during the previous trading session. A continuing failure by the sterling traders to test the dollar offers around 1.7390, a 23.6 Fib of the 1.8500-1.7048 USD rally will most likely see the greenback longs set the pair up for a sharp move to the downside. A collapse to the downside will most likely see the pair head lower and test the bids around 1.7139, a level established by the November 16 daily low, and with subsequent breakdown seeing the pound bulls scramble as the pair collapses toward the 1.7048, the most recent 2005 low and a gateway toward the psychologically important 1.7000 handle. Indicators remain in favor of greenback bulls 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 continues to put up a fight against the dollar longs as the pair remains confined to a 1.3000-1.3285 trading range that dominated the price action the beginning of November. As greenback longs gear up for another advance, a close above the 1.3200 will most likely see the price action becomes more dollar bullish with the pair advancing toward 1.3289, a 2005 High and the range's upper boundary. A subsequent break to the upside will give the dollar bulls the confirmation that the momentum to the upside has resumed and the next target of opportunity is 1.3389, a level created by the October 3, 2003 daily high, with further move to the upside targeting the psychologically important 1.3500 handle. 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 remains a mystery as the pair once again headed toward the 1.1600 handle and is currently trading within a striking distance of the 2005 Low at 1.1588. As the pair remains supportive of the Loonie traders, a move to the downside will be a critical one as a break of the greenback defenses will most likely see the Canadian dollar longs sweep clean the stops place by the US dollar traders below 1.1588. A collapse of the 2005 low will most likely see the downside momentum accelerate with the pair tagging bids below 1.1543, a level established by the January 1990 Monthly low, with further move to the downside breaking below the psychologically important 1.1500 handle and seeing the pair finally exhaust its momentum around 1.1402, a level established by the November 1991 monthly high. Indicators are favoring of the Canadian dollar longs with both momentum indicator and negative MACD below the zero line, while extremely oversold Stochastic gives the US dollar bulls a chance to retaliate.

AUD/USD - Australian dollar managed to push the pair above the .7457, a level marked by the combination of the 38.2 Fib of the .7798-.7267 USD rally and 50-day SMA, but lost momentum as pair failed to break above the psychologically important .7500 handle. A reversal will most likely see the pair head back down toward .7457 the 38.2 Fib of the .7798-.7267 USD rally, and with a break below .7400 level collapsing through .7383, a level established by 23.6 Fib of the .7798-.7267 USD rally. A further move on the part of the greenback traders will most likely see the pair head toward .7321, a level marked by the November 28 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.

NZD/USD - New Zealand dollar remains the strongest of the majors as the pair broke above the .7100 handle and is trading within striking distance of .7169, a level established by the 61.8 Fib of the .7468-6681 USD rally. As the pair continues to exhibit exhaustion move, a subsequent reversal from these levels will most likely see the US dollar traders push the pair below the .7100 figure and test the bids around .7077, a level marked by the 50.0 Fib of the .7468-6681 USD rally. A subsequent break to the downside will most likely see the pair tumble further and head below the psychologically important .7000 handle, and take on the Kiwi's bids around .6984, a level established by the 38.2 Fib of the .7468-6681 USD rally. Indicators are support the New Zealand dollar longs with both the momentum indicator and positive MACD above the zero line, while overbought oscillators give the US dollar bulls a chance to retaliate. 

Sam Shenker is a Technical Currency Analyst for FXCM.