EUR/USD - Euro bulls once again pushed the pair toward the 1.1800 handle, which saw the price being constantly rejected as par remains confined to a narrow 1.1700-1.1863 consolidation range. In case the pair fails to reach the ranges upper boundary at 1.1863, a level marked by the 23.6 Fib of the 1.2588-1.1644 USD rally, a reversal from these levels will most likely see the pair head lower and break below the 1.1700 handle and see the pair accelerate toward 1.1639, the most recent 2005 low. A collapse of the level of such significance will most likely see the pair head lower and test 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 mixed with positive momentum 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 finally made a move toward the psychologically important 120.00 handle as the price action seemed to stall above the 121.00 figure. As the pair head lower, a confirmed break below the 120.00 level will most likely see the yen traders add to their existing positions and push the dollar bulls toward 119.24, a level established by the November 30 daily low and is reinforced by the 20-day SMA, thus seeing the yen traders sweep clean the stops placed below the 120.00 figure. A further move to the downside will most likely see the USD/JPY gain momentum as more prospective yen bulls join the retrace with the pair taking on the 118.35, a level created by the November 28 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 39.99 signaling an existence of a trend, not a direction of one, while both overbought RSI and Stochastic give the yen longs a chance to retrace part of the rally.

GBP/USD - British pound bulls finally succeed to gain momentum above the 1.7400 figure as they pushed the pair above 1.7390, a 23.6 Fib of the 1.8500-1.7048 USD rally. As cable traders push their luck and aim for the psychologically important 1.7500 handle, a confirmed break above 1.7475 level will see the pair gain further momentum to the upside and take on the dollar offers around 1.7517, a November 10 daily high, a level that is further reinforced by the 50-day SMA. However given the recent price action, a pullback to the current levels is nothing more than a retrace following a 1500 pip move from the beginning of September, and a failure by the sterling longs to retake the 1.7500 figure will signal weakness and combined selling from dollar traders and liquidation by the pound bulls will most likely see the pair head toward 1.7283, a 20-day SMA, a level that currently defends 1.7249, a December 2 daily low and is further reinforced by the 20-day SMA. Indicators are mixed with positive momentum above the zero line and negative MACD sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CHF - Swiss Franc bulls decided to once again test the greenback bids around 1.3040, a level marked by the 23.6 Fib of the 1.2240-1.3285 USD rally as they pushed the pair lower following the inability of dollar traders to break above the 20- day SMA at 1.3138. As the range begins to shrink and volatility picks up, a confirmed break below the 1.3040 will most likely see the pair head lower and test the 50-day SMA at psychologically important 1.3000 handle. However given the inability by the Swiss Franc traders to push the pair below the 1.3000 figure, the next move on the part of the dollar traders will most likely see a substantial reversal and a move above the 20-day SMA will most likely see the pair head higher and aim for the Swissie offers around 1.3237, a level established by the November 28 daily high. Indicators are mixed with positive momentum above the zero line and negative MACD sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar traders continued to put up a fight in a futile attempt to keep the pair below the 1.1600 handle as greenback traders set their sights on a retrace. As the pair remains above the 1.1600 figure, a further move to the upside will most likely see the pair head higher and test the Loonie bids around 1.1686, a level marked by the October 12 daily low. A break above will most likely see the pair head above the 1.1700 level and sweep the stops placed above the figure thus adding to upside momentum with the US dollar aiming for the Loonie offers around 1.1803, a level established by the November 10 daily low and is protected by the combination of the 20-day and 50-day SMA around the 1.1730-60 zone. 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 tumbled like a rock after triggering the stops below the psychologically important .7500 handle and temporarily stalled its descent around .7456, a level established by the 38.2 Fib of the .7798-.7267 USD rally and is reinforced by the 50- day SMA. A further move to the downside will most likely see the pair head below .7400 figure and test the Australian dollar bids around .7383, a level marked by 23.6 Fib of the .7798-.7267 USD rally. A sustained momentum to the downside will most likely see additional greenback traders coming in into the market, which would add to the overall momentum, as they push the AUD/USD toward .7321, a level established 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 ADX is above 25 at 25.79 signaling trending conditions, with overbought Stochastic giving US dollar longs a chance to further retrace the Aussie rally.

NZD/USD - New Zealand dollar traders gave up hope as the pair collapsed through the psychologically important .7000 handle and temporarily stalled around .6984, a level established by the 38.2 Fib of the .7468-.6681 USD rally, which is further reinforced bythe combination of the 20-day and 50day SMA's. A further move to the downside will most likely see the pair head lower and test the bids around .6930, a level established by the October 19 daily low and is further reinforced by the combination of the 20-day and 50-day SMA's at .6960. Indicators are supporting the New Zealand dollar longs with both the momentum indicator and positive MACD above the zero line, while overbought Stochastic giving the US dollar traders a chance to push the pair lower.

Sam Shenker is a Technical Currency Analyst for FXCM.