EUR/USD - Euro traders saw the last week's momentum wane into nothingness as pair failed to sustained its upward movement above the 1.2100 figure with EUR/USD collapsing back down toward the psychologically important 1.2000 handle. As dollar longs shake off recent weakness, a move toward 1.2002, a level established by 38.2 Fib of the 1.2588-1.1639 USD rally, will most likely signal reversal and a break below 1.1941, a 20-day SMA, will confirm that the dollar dominated swing is underway. In case the single currency bids around 1.1865, a level marked by 23.6 Fib of the 1.2588-1.1639 USD, prove to be thinner that expected, a further move to the downside will see the pair gain downside momentum and aim for the euro bids around 1.1779, a December 30 daily low, thus seeing the greenback traders fully retrace the holiday anti-dollar 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 remain on a warpath with the pair stalling below the 114.00 handle as USDJPY encountered massive dollar bids around 113.71, a July 20 daily high. A reversal from current levels will most likely se the pair head higher and with a move above the psychologically important 115.00 handle seeing the dollar traders takeover the price action and push the USDJPY toward 116.46, a level established by the January 5 daily high and is further reinforced by the 20-day SMA at 116.71. A further move to the upside will most likely see yen traders give up more of the recently captured territory and retreat toward 117.31, a 23.6 Fib of the 104.16-141.46 USD rally. A sustained momentum on the part of the dollar longs will most likely see the pair head higher and test the Japanese yen offers around 118.17, a level created by the December 30 daily high and is further reinforced by the 50-day SMA at 118.08. Indicators are favoring the Japanese Yen longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 34.72, 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 found themselves on the receiving end of the dollar counterattack, but managed to hold their ground as the pair remained above the 1.7600 figure. As greenback traders muster their forces and push the pair lower, a break below 1.7609, a level marked by the 38.2 Fib of the 1.8500-1.7048 USD rally, will most likely issue a signal that the dollar rally has began and the next move to the downside will most likely see the pair head below the psychologically important 1.7500 handle. A break below 1.7500 will most likely see the greenback bulls sweep clean the sterling bids around 1.7487, a level established by the January 5 daily high and is reinforced by the 20-day SMA. A sustained momentum to the downside will most likely see the GBPUSD head lower and test the pound bids around 1.7393, a 23.6 Fib of the 1.8500-1.7048 USD rally, which is further reinforced by the 50-day SMA at 1.7415. Indicators are favoring cable longs with both positive momentum indicator and MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CHF - Swiss Franc traders failed to push the pair lower after the price action stalled around 1.2681, a 200-day SMA as the pair stalled within a striking distance of the psychologically important 1.2500 handle. As Swissie longs continue their retreat, a move higher will most likely see the pair test the Swiss Franc offers around 1.3037, a level marked by the 38.2 Fib of the 1.2240-1.3285 USD rally and is further reinforced by the 20-day SMA at 1.2984, thus seeing the price action head above the psychologically important 1.3000 handle. A further break above will most likely see the greenback trader's target 1.3159, a level established by the January 3 daily high and with a further move to the upside will most likely see Swiss Franc bulls lose further ground to the advancing dollar longs. Indicators are favoring Swiss Franc longs with both negative momentum indicator and MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar traders saw their dominance of the price action come to an end as the pair headed higher and is currently testing the Loonie offers around 1.1700, a level defended by the 50-day SMA. A further move to the upside will most likely see the pair head higher and with a break above 1.1741, a level established by the 23.6 Fib of the 1.2733-1.1433 CAD rally, and with a move to the upside most likely seeing the pair extend its gains toward 1.1803, a level marked by November 10 daily low. A further move on the part of US dollar traders will most likely see the USDCAD aim toward 1.1927, a level created by the key 38.2 Fib of the 1.2733-1.1433 CAD rally. Indicators are favoring Canadian dollar longs with both negative momentum indicator and MACD below the zero line, while neutral oscillators give either side enough room to maneuver

AUD/USD - Australian dollar longs failed to follow through with the initial momentum as the pair stalled above the psychologically important .7500 handle. As the Aussie longs begin their retreat, a further move to the downside will most likely see the pair head lower and with a move below .7503, a level established by the 50.0 Fib of the .7798-.7236 USD rally, most likely seeing the AUDUSD extend its decline toward .7439, a 38.2 Fib of the .7798-.7236 USD rally. A further move on the part of the greenback traders will most likely see the pair head lower and aim for .7395, a combination of the 20-day and 50-day SMA's, which currently defend .7362, a level created by the 23.6 Fib of the .7798-.7236 USD rally. Indicators are supporting Australian dollar longs with both positive momentum indicator and positive MACD above the zero line, with ADX above 25 at 25.43, signaling an existence of a trend, not a direction of one, while neutral oscillators give either side enough room to maneuver.

NZD/USD - New Zealand dollar bulls continued their advance against the US dollar counterparts as the price action remained below the psychologically important .7000 handle. 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 is further reinforced by the 200-day SMA, which currently acts as a gateway to the psychologically important .7000 handle. A subsequent reversal will most likely see the pair head lower and aim for the Kiwi's bids around .6909, a level created by the 50-day MSA and wit ha break below aiming for .6871, a 23.6 Fib of the 7468-.6681 USD rally. Indicators are mixed with positive momentum indicator diverging from the negative MACD, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.