EUR/USD - Euro bulls managed to rally the pair above the 1.1800 handle, but failed to hold the level as the dollar traders stepped in and offered the pair below 1.1863, a level marked by the 23.6 Fib of the 1.2588-1.1644 USD rally. Given the constant rejection of the 1.1800 level puts the euro traders at disadvantage as large dollar offers most likely positioned above the figure ready to take advantage of the price spikes. As the pair remains confined in a narrow trading range, a move toward and a break below the 1.1700 handle will most likely see the pair accelerate toward 1.1639, the most recent 2005 low. 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 below the psychologically important 120.00 handle as the pair failed to maintain momentum above the 121.00 figure. As the pair heads lower, a confirmed breakdown below the 120.00 level will most likely see the yen traders push the dollar bulls toward 119.24, a level established by the November 30 daily low, which is reinforced by the 20-day SMA. 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. A further move to the downside will most likely see the pair head lower and test the bids around 117.36, a level established by the 23.6 Fib of the 104.16-121.44 JPY rally and is further reinforced by the 50-day SMA. Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 declining to 38.07 signaling an existence of a maturing trend, not a direction of one, while overbought Stochastic gives the yen longs a chance to retrace part of the rally.

GBP/USD - British pound bulls managed to push the above the psychologically important 1.7500 figure only to lose momentum around 1.7517, a November 10 daily high, and retreated below the handle toward the 50-day SMA at 1.7484. As cable longs consolidate their recent gains and once again try to retake the1.7500 figure, a failure to close above will most likely encourage dollar traders to step-up their selling into any price spikes with stops strategically placed above the 1.7600 handle, a level marked by the 38.2 Fib of the 1.8500-1.7048 USD rally. A failure by the sterling longs to retake the 1.7500 figure signals weakness and combined selling from dollar traders and liquidation by the pound counterparts will most likely see the pair head toward 1.7291, a 20-day SMA, and with further move to the downside testing the bids around 1.7249, a December 2 daily low. 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 managed to push the pair below 1.3040, a level marked by the 23.6 Fib of the 1.2240-1.3285 USD rally, and took the USD/CHF below the psychologically important 1.3000 handle, but failed to close below as price action stalled around the 50-day SMA. Given the inability by the Swiss Franc traders to gain momentum below the 1.3000 figure, the next move on the part of the dollar traders will most likely see a substantial reversal and with a move toward the 20-day SMA at 1.3123 most likely seeing the pair gain momentum and head higher. A further move to the upside will most likely see the dollar traders 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 continued to tread sideways as the price action in the pair remained non-existent as neither side managed to gain the upper hand.  As US dollar traders push USD/CAD 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 traders tested their luck along with the US dollar offers above the psychologically important .7500 handle at .7516, a level established by the 50.0 Fib of the .7798-.7267 USD rally, but failed to gain momentum as significant offers prevented the pair from heading higher. A further move to the downside will most likely see the pair test the bids around .7456, a level established by the 38.2 Fib of the .7798-.7267 USD rally and is reinforced by the 50- day SMA, with collapse most likely seeing 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. Indicators are diverging with positive momentum indicator above the zero line and negative MACD below the zero line, while overbought Stochastic gives the US dollar trader a chance to further retrace the Aussie rally.

NZD/USD - New Zealand dollar traders remained motionless as greenback counterpart consolidated their gains following a sharp correction. As the pair climbs back above the psychologically important .7000 handle and rests below the 200-day SMA at .7037, a further move to the downside taking on  Kiwi bids around .6984, a level established by the 38.2 Fib of the .7468-.6681 USD rally, which is further reinforced by the combination of the 20-day and 50-day SMA's. A sustained momentum 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 thus seeing the pair break below the combination of the 20-day and 50-day SMA's at .6960, signaling further New Zealand dollar weakness. 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.