EUR/USD - Euro traders managed to break above the narrow 1.1820-1.1870 zone, a range created by the combination of the 20-day, 50-day SMA's and the 23.6 Fib of the 1.2588-1.1639 USD rally and pushed the pair above the 1.1900 figure. As euro bulls push the pair higher, a further move to the upside will most likely see the pair head above the 1.1950 level and target the greenback offers around the psychologically important 1.2000 handle, a level established by 38.2 Fib of the 1.2588-1.1639 USD rally. A sustained downside momentum will most likely see the EUR/USD head higher and target 1.2115, a level marked by the 50.0 Fib of the 1.2588-1.1639 USD rally, breaking of which will most likely see the single currency traders set their sights on the 1.2227, a level defended by the key 61.8 Fib of the 1.2588-1.1639 USD rally. Indicators are favoring the euro longs with both positive momentum indicator and MACD treading above the zero line, while neutral oscillators give either side enough room to maneuver.

USD/JPY - Japanese Yen bulls once again defended 117.37, a level established by the 23.6 Fib of the 104.16-141.46 USD rally, after the dollar bulls kept the pair above the 117.00 figure. As greenback longs continue to bid up the pair, the next move to the upside will most likely see the greenback traders extend their gains above the 118.00 figure and take out the yen defenses around 118.21, a level established by the November 23 daily low and is reinforced by the 20-day SMA. A sustained upside momentum on the part of the greenback longs will most likely see the USD/JPY head higher and aim for the offers above the psychologically important 120.00 handle at 120.46, a level marked by the December 13 daily high. Indicators are diverging with negative momentum indicator below the zero line while positive MACD is sloping downward toward the zero line, with ADX above 25 at 33.54, signaling an existence of a maturing trend, not a direction of one, while neutral oscillators give either side enough room to maneuver.

GBP/USD - British pound traders managed to exploit the liquidity crunch and launched a countermove against the dollar with the pair heading toward 1.7387, a 23.6 Fib of the 1.8500-1.7048 USD rally. A further move to the upside will most likely see the pair head higher and aim for the psychologically important 1.7500 handle, a level defended by the combination of the 20-day and 50-day SMA at 1.7486. A break above the 1.7500 figure will most likely see the pair stall around 1.7604, a level marked by the 38.2 Fib of the 1.8500-1.7048 USD rally, and with a further move to the upside most likely see the GBP/USD lose upside momentum around 1.7777, a level created by the 50.0 Fib of the 1.8500-1.7048 USD rally. Indicators are mixed with negative momentum indicator diverging from positive MACD, while neutral oscillators give either side enough room to maneuver.

USD/CHF - Swiss Franc traders managed to push the pair lower after the price action stalled around 1.3154, a December 8 daily high with USD/CHF heading below the 1.3100 figure. As Swissie longs continue their advance, a move lower will most likely see the pair test the greenback bids around 1.3039, a level marked by the combination of the 20-day, 50-day SMA's and 23.6 Fib of the 1.2240-1.3285 USD rally, and with a break below most likely targeting 1.2886, a level established by the 38.2 Fib of the 1.2240-1.3285 USD rally. A further move to the downside will most likely see Swiss Franc bulls lose the downside momentum around 1.2763, a 50.0 Fib of the 1.2240-1.3285 USD rally. Indicators are mixed with negative momentum indicator diverging from positive MACD, while neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar traders managed to push the pair lower after the US dollar longs encountered active offers around 1.1740, a level established by the combination of the 50-day SMA and the 23.6 Fib of the 1.2733-1.1433 CAD rally. A move to the downside will most likely see the pair head lower and wit the break below 1.1619, a 20-day SMA most likely target greenback offers below 1.1600 figure at 1.1535, a December 6 daily low. A further move to the downside will most likely see the pair head lower and aim for the psychologically important 1.1500 handle, at which point the price action will most likely stall with the Loonie longs consolidating their gains. Indicators are diverging with positive momentum indicator above the zero line while negative MACD is sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/USD - Australian dollar longs staged a sharp rally following the inability by the greenback longs to take the .7200 handle. As Aussie bulls celebrate the temporary victory and push the pair above the .7300 figure, a next move to the upside will most likely see the pair head higher and target the US dollar offers around .7361, a 23.6 Fib of the .7798-.7236 USD rally. A further move  on the part of Australian dollar traders will most likely see the AUD/USD test the greenback offers around .7410-.7450 zone, a range established by the combination of 50-day, 20-day SMA's and 38.2 Fib of the .7798-.7236 USD rally. A subsequent reversal will most likely see the US dollar resume its downward trend. Indicators are supporting US dollar longs with both negative momentum indicator and negative MACD below the zero line, with ADX above 25 at 27.82, signaling an existence of a trend, not a direction of one, while extremely oversold Stochastic adds to the trending outlook.

NZD/USD - New Zealand dollar bulls managed to push back advancing greenback longs with the pair heading above the .6800 figure following a sharp countermove. In case Kiwi longs continue to push the pair higher, a next move to the upside will most likely see the NZD/USD head higher and test the offers around .6871, a 23.6 Fib of the .7468-.6681 USD rally, with a further move to the upside seeing the pair head above the .6900 figure and targeting .6939, a combination of the 50-day and 20-day SMA's. A further move to the upside will most likely see the pair head higher and top out around .6984, a level established by the 38.2 Fib of the 7468-.6681 USD rally, and a gateway to the psychologically important .7000 handle. Indicators are supporting US dollar longs with both negative momentum indicator and negative MACD below the zero line, with ADX above 25 at 26.87, signaling an existence of a maturing trend, not a direction of one, while extremely oversold Stochastic adds to the trending outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.