EUR/USD - Euro traders succeeded in retaking the psychologically important 1.2000 handle, a level not seen since the beginning of November, thus breaking above the 38.2 Fib of the 1.2588-1.1639 USD rally. 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, breaking of which might see the pair stall around the 1.2100-1.2200 range as the pair rejected the price below the 1.2227, a level established by the 61.8 Fib of the 1.2588-1.1639 USD rally during the October trading range. 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 finally managed to push the pair below the psychologically important 120.00 handle during the latest bout of the dollar bearishness as USD/PY tumbled like a rock toward 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. A further retrace will most likely see the yen bulls head lower and test the greenback bids around 116.24, a level established by the October 27 daily high. Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 declining to 32.48, 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 traders once again crashed like waves against the beach and fell back after failing to break above 1.7772, a level marked by the 50.0 of the 1.8500-1.7048 USD rally. Another attempt by the pound longs to take on the dollar offers will most likely see the pair head higher and test 1.7947, a level established by the 61.8 Fib of the 1.8500-1.7048 USD rally, thus seeing the pair approach within a striking distance of the psychologically important 1.8000 figure. A subsequent reversal will most likely see the dollar traders take over the price action and once again push the pair in the direction of the 1.7500 figure. Indicators are mixed with positive momentum above the zero line and negative MACD sloping upward toward the zero line, while overbought Stochastic gives the greenback longs a chance to retaliate.

USD/CHF - Swiss Franc traders managed to break the 1.2900 figure and took the pair deep below the 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. A collapse of the dollar bids around the psychologically important 1.2500 handle will most likely see the Swiss Franc rally stall around 1.2465, a level established by the 78.6 Fib of the 1.2240-1.3285 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 broke below the psychologically important 1.1500 handle and pushed deeper into the territory not seen since late 1990. As the pair remains in a downtrend, a further move to the downside will most likely see the USD/CAD 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 1.1000 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 ADX is above 25 at 25.39 point to an existence of a trend, no a direction of one, with both oversold Stochastic and RSI adding to the trending outlook.

AUD/USD - Australian dollar continued to tread sideways above the psychologically important .7500 handle as the pair failed to break above 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 fail to push the pair higher, a lack of the upside momentum will constitute as weakness on the part of Australian dollar, which would give the greenback traders a chance to get ready for a move to the downside. 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 ADX is above 25 at 26.13 signaling an existence of a trend not a direction of one, while overbought Stochastic gives the US dollar trader a chance to further retrace the Aussie rally.

NZD/USD - New Zealand dollar traders continued to establish a second shoulder of the 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 see the greenback longs push the NZD/USD below the combination of the 200-day and 20-day SMA's at .7014-7032 SMA corridor. 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.