EUR/USD - Euro remained above the psychologically important 1.2000 handle, a level not seen since the beginning of November, leaving the 38.2 Fib of the 1.2588-1.1639 USD rally as a potential support for prospective single currency longs. 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. A sustained momentum to the upside will most likely see the pair head higher and test the dollar offers around 1.2312, a level marked by the 200-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/JPY - Japanese Yen traders continued to pound the greenback as the pair tumbled through the dollar bids like hot knife through butter. As the pair continues to tumble further and breaks below the 116.00 figure, a further move to the downside will most likely see the yen longs extend their move toward the psychologically important 115.00 handle test the bids around 114.85, a level marked by the 38.2 Fib of the 104.16-121.44 JPY rally. A further collapse of the greenback bids will most likely see the yen maintain its momentum and head toward the 112.81, a level established by the 50.0 Fib of the 104.16-121.44 JPY rally. A subsequent pause will most likely give the yen traders a chance to consolidate their significant gains. Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 at 34.45, 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 managed to keep the pair above the 1.7700 figure, following their inability to break above the dollar offers around 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 sterling head higher and test 1.7947, a level established by the 61.8 Fib of the 1.8500-1.7048 USD rally, and a gateway to 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 extremely overbought Stochastic gives the greenback longs a chance to retaliate.

USD/CHF - Swiss Franc bulls remained on the offer side of the trade as they continued to push the pair toward the 1.2800 figure during the latest bout of the dollar bearishness. A further move to the downside will most likely see the on the part of the Swissie longs head lower and test the 1.2765, a support established by the 50.0 Fib of the 1.2240-1.3285 USD rally, with break to the downside seeing the pair test the greenback bids around 1.2641, a level established by the key 61.8 Fib of the .2240-1.3285 USD rally. A sustained momentum to the downside will most likely see the Swiss Franc traders aim toward the psychologically important 1.2500 handle, but a break below will most likely see the pair 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 failed to keep the psychologically important 1.1500 handle as the pair rejected every offer below the figure and saw the greenback bulls leave the hammer on the daily chart, signaling a potential reversal. A further move to the upside will most likely see the Loonie bulls give up the 1.1600 figure and retreat toward the 1.1686, a level established by October 12 daily low. A further move to the upside will most likely see the US dollar longs test the offers above the 1.1700 handle as they push the pair toward 1.1745, a level established by the combination of the 50-day SMA and the 23.6 Fib of the 1.2733-1.1433 CAD rally. 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 26.12 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 traders gave up hope of keeping the psychologically important .7500 handle and tumbled through .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. A further failure by the Aussie longs to stem the tide of the advancing greenback bulls will most likely see the pair collapse below the .7400 figure and test the bids around .7383, a level marked by the 23.6 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 26.05 signaling an existence of a trend not a direction of one, while overbought Stochastic gives the US dollar traders a chance to further retrace the Aussie rally

NZD/USD - New Zealand dollar traders felt the earth part beneath their feet as the pair collapsed through the psychologically important .7000 handle following the failure by the Kiwi longs to gain momentum above .7075, a level established by the 50.0 Fib of the .7468-.6681 USD rally. A break of such magnitude signals an overall weakness in the pair combined with a break below the .6930, a level marked by the October 19 daily low, will most likely see the pair continue to accelerate to the downside and test the bids below the .6900 figure at .6869, a level established by the 23.6 Fib of the .7468-.6681 USD rally. A further collapse of the Kiwi's bids will most likely see the US dollar traders push the pair below the .6800 level and test the bids around .6780, a level established by the November 15 daily low. 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.