EUR/USD - Euro traders lost more ground to the greenback longs after the pair slid below the 1.2100 figure following the failure by the single currency longs to keep EUR/USD above 1.2115, a level established by the 50.0 Fib of the 1.2588-1.1639 USD rally. As dollar traders reverse gains made by the euro counterpart and push the pair lower, a move toward 1.2002, a level marked by 38.2 Fib of the 1.2588-1.1639 USD rally, will most likely add to the reversal outlook. A further break below 1.1947, a 20-day SMA, will most likely see the greenback take on the single currency bids around 1.1865, a level created by 23.6 Fib of the 1.2588-1.1639 USD. A sustained momentum to the downside will most likely see the pair 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 continued to struggle above the 114.00 figure with their downside momentum stalling following the encounter with massive dollar bids around 113.71, a July 20 daily high. As the pair reverses and heads higher, the next move to the upside will most likely see the USD/JPY move above the psychologically important 115.00 handle and aim toward 116.46, a level established by the January 5 daily high which is further reinforced by the 20-day SMA at 116.44. A further move to the upside will most likely see yen longs give lose more territory as they retreat toward 117.31, a 23.6 Fib of the 104.16-141.46 USD rally. A sustained momentum on the part of the greenback bulls 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 that is further reinforced by the 50-day SMA at 118.04. Indicators are favoring the Japanese Yen longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at

GBP/USD - British pound traders saw the pair began to slide toward the 1.7600 figure as greenback longs managed to keep the GBP/USD well offered following previous weeks intense price action. As greenback traders push the pair lower, a move below 1.7609, a level marked by the 38.2 Fib of the 1.8500-1.7048 USD rally, will most likely confirm that the dollar rally has began and the next move to the downside will most likely see the GBP/USD break below the psychologically important 1.7500 handle. A collapse 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 further downside momentum 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, a level 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 saw the price action stall around 1.2762, a level established by the 50.0 Fib of the 1.2240-1.3285 USD rally, after the pair failed to advance beyond 1.2684, a 200-day SMA. As Swissie longs resume 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 1.2974, thus seeing the price action head above the psychologically important 1.3000 handle. A further move above will most likely see the dollar trader's target 1.3159, a level established by the January 3 daily high and with a further upside momentum most likely seeing Swiss Franc bulls lose further ground to the advancing dollar longs. Indicators are favoring the Swiss Franc longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 26.61, signaling an existence of a trend, not a direction of one, while neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar traders managed to temporarily thwart the advance by the greenback longs as the pair failed to gain momentum above 1.1700, a level defended by the 50-day SMA. As US dollar traders once again push the pair above 1.1700, a further move to the upside will most likely see the pair USD/CAD higher and with a break above 1.1741, a level established by the 23.6 Fib of the 1.2733-1.1433 CAD rally, most likely seeing the greenback bulls 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 saw their efforts wasted as the pair fell below the psychologically important .7500 handle, leaving a doji during the previous trading session. As the Aussie longs begin their retreat, a sustained momentum 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 head toward .7439, a 38.2 Fib of the .7798-.7236 USD rally. A further move on the part of the US dollar 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 defends .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 25.14, 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 saw the price action lose momentum with the pair failing to advance above the .6950 mark. In case Kiwi longs manage to push NZD/USD higher, 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.