EUR/USD - Euro continued to push the pair higher and managed to confirm a breakout above the 1.1863, a level marked by the 23.6 Fib of the 1.2588-1.1644 USD rally, and with sustained momentum is took out offers around 1.1885, a 50-day SMA and headed above the 1.1900 handle. As the momentum temporarily stalls around 1.1923, a level established by the October 24 daily low, a further move to the upside will most likely see the pair reach the psychologically important 1.2000 handle, a level defended by the 38.2 Fib of the 1.2588-1.1639 USD rally and with a further move to the upside will most likely see the pair head higher and test the dollar offers around 1.2116, a level marked by the 50.0 Fib of the 1.2588-1.1639 USD rally. 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 traders managed to push the pair below the psychologically important 120.00 handle, but one again failed to gain momentum as the breakout stalled around 119.72, a 20-day SMA, which currently acts as a buffer zone for 119.24, a level established by the November 30 daily low. As yen longs once again hit the greenback bids, a sustained momentum to the downside will most likely see the USD/JPY head lower and take 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 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 3733.23 signaling an existence of a maturing trend, not a direction of one, while neutral oscillators signal an end of the dollar dominated trend.

GBP/USD - British pound staged the sharpest rally with the magnitude not seen since the end of August with the pair climbing above 1.7700 handle, only to see its momentum spent as GBP/USD failed to break above 1.7772, a level marked by the 50.0 of the 1.8500-1.7048 USD rally. A retrace from the current levels will most likely see the cable traders step in and push the pair higher toward the 1.7900 handle, breaking of which will most likely see the sterling fail to break above 1.7947, a level established by the 61.8 Fib of the 1.8500-1.7048 USD rally, thus seeing the pair fail 1.8000 figure. 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 trader managed to break below the psychologically important 1.3000 handle, a level reinforced by the 50-day SMA and after gaining momentum took the pair briefly below 1.2900 figure. Following the breakdown, a further move to the downside will most likely see the Swissie traders once again test the dollar bids around 1.2888, a level marked by the 38.2 Fib of the 1.2240-1.3285 USD rally. A sustained momentum on the part of the Swissie longs will most likely see the pair head lower and take on the 1.2765, a support established by the 50.0 Fib of the 1.2240-1.3285 USD rally, with further break to the downside seeing the pair stall around 1.2641, a level established by the key 61.8 Fib of the .2240-1.3285 USD rally. 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 bulls managed to push the pair toward the psychologically important 1.1500 handle, but failed to test the greenback offers. As the pair continues to head lower, a further move to the downside will most likely see the pair head lower and with a break below the psychologically important 1.1500 handle, will most likely see the pair head lower and test the US dollar bids around 1.1406, a level established by the 50.0 Fib of the May-Oct CAD rally. A further move to the downside will most likely see the pair enter a critical territory as a break below the 1.1300 figure, a level defended by the 61.8 Fib of the May-Oct CAD rally, will most likely open the very important 1.0000 par handle as a potential target as the pair did not trade below the 1.1300 since the late 1990. Indicators are favoring of the Canadian dollar longs with both momentum indicator and negative MACD below the zero line, while both oversold Stochastic and RSI give the US dollar bulls a chance to retaliate.

AUD/USD - Australian dollar traders continued to struggle above the psychologically important .7500 handle as the pair failed to test the US dollar offers around .7575, a level established by the 61.8 Fib of the .7798-.7267 USD rally. As Aussie longs once again try to push the pair higher, a failure to gain the upside momentum will constitute as weakness on the part of Australian dollar, which would give the greenback traders a chance to establish fresh shorts above the .7500 figure. A subsequent move to the downside will most likely see the pair head toward the psychologically important .7500 handle, and with a break below the .7516, a level established by the 50.0 Fib of the .7798-.7267 USD rally. A further collapse of the Aussie bids most likely see the pair tumble further and test the potential support around .7456, a level marked by the 38.2 Fib of the .7798-.7267 USD rally. Indicators are favoring the Aussie longs with both momentum indicator and positive MACD above 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 once again saw the futility of their struggle as the pair failed to hold the .7100 handle and headed back down, thus leaving a small Head and Shoulders formation. A further move to the downside will most likely see the pair head lower and with a break below .7075 a level established by the 50.0 Fib of the .7468-.6681 USD rally, most likely seeing the pair accelerate to the downside. A sustained momentum on the part of the US dollar bulls will most likely see the break of the Head and Shoulders, thus seeing the downside momentum accelerate as fresh Kiwi shorts enter the market and push the pair below the psychologically important .7000 handle, a level defended by the 38.2 Fib of the .7468-.6681 USD rally at .6983. Indicators are supporting the New Zealand dollar longs with both the momentum indicator and positive MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.