EUR/USD - Euro bulls once again failed to keep the pair above the 1.2100 figure after the greenback traders continuously rejected single currency bids above 1.2115, a level established by the 50 Fib of the 1.2588-1.1639 USD rally. A reversal and a subsequent move below will most likely see the pair head lower and descent toward the psychologically important 1.2000 handle, with a move below 1.2002, a level marked by 38.2 Fib of the 1.2588-1.1639 USD rally, most likely seeing the pair tumble further and break below 1.1932, a level marked by the December 28 daily high, which is further reinforced by 20-day SMA at 1.1963.  A sustained momentum on the part of the dollar longs will most likely see the pair head below 1.1900 and test the single currency bids around 1.1864, a level created by the 23.6 Fib of the 1.2588-1.1639 USD rally. Indicators are favoring euro longs with both positive momentum indicator and MACD treading above the zero line, while overbought Stochastic gives the greenback longs a chance to retaliate.

USD/JPY - Japanese Yen traders failed to keep the pair below the 114.00 figure following the rejection of the offers below 113.71, a July 20 daily high. An inability by the yen bulls to push the pair lower will most likely see USD/JPY reverse direction and with a move above 114.80, a key 38.2 Fib of the 104.16-141.46 USD rally, take on the yen offers around 115.53, a level established by the December 5 daily high thus seeing dollar longs break through the psychologically important 115.00 handle. A further move to the upside will most likely greenback traders take on the offers around 116.46, a level established by the January 5 daily high and is further reinforced by the 20-day SMA at 116.17. A sustained upside momentum will most likely see yen bulls retreat toward 117.31, a 23.6 Fib of the 104.16-141.46 USD rally. Indicators are favoring the Japanese Yen longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 39.02, signaling an existence of a maturing trend, not a direction of one, while oversold Stochastic gives dollar longs a chance to reverse direction.

GBP/USD - British pound traders saw their world once again turn upside down after they failed to keep the pair above the 1.7700 figure and once again tumbled toward 1.7604, a level established by the 38.2 Fib of the 1.8500-1.7048 USD rally. A break below 1.7600 figure will most likely see the pair gain downside momentum and with a move below the psychologically important 1.7500 take on 1.7487, a level established by the January 5 daily high and is reinforced by the 20-day SMA at 1.7462. A further decline below the 1.7400 level will most likely see greenback traders push through 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, and extend their rally toward 1.7249, a level established by December 2 daily high. A move of such magnitude will most likely open the psychologically important 1.7000 handle as a target of opportunity. Indicators are favoring cable longs with both positive momentum indicator and MACD above the zero line, while overbought Stochastic gives dollar longs a chance to reverse direction.

USD/CHF - Swiss Franc bulls failed to keep the pair below the 1.2800 figure and swiftly retreated after the greenback logs managed to USD/CHF against 1.2884, a level marked by the 38.2 Fib of the 1.2240-1.3285 USD rally. A further move on the part of the greenback longs will most likely see the pair break above the 20-day SMA at 1.2974 and sustained momentum to the upside will most likely see the pair head above the psychologically important 1.3000 handle and take on the 1.3159, a level established by the January 3 daily high. A further move on the part of the greenback bulls will most likely see the pair head higher and test the offers around 1.3283, a level established by the 2005 High. Indicators are favoring the Swiss Franc longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 27.76, signaling an existence of a trend, not a direction of one, while oversold Stochastic gives dollar longs a chance to retaliate.

USD/CAD - Canadian dollar bulls once again found themselves pushed above the 1.1600 figure after the pair continuously rejected the offers below. As US dollar traders cement their bids above 1.1600, a further move to the upside will most likely see the pair higher and with a break above 1.1700 figure take on the Loonie offers around 1.1741, a level established by the 23.6 Fib of the 1.2733-1.1433 CAD rally. A further move to the upside will most likely see the greenback bulls extend their gains toward 1.1803, a level marked by November 10 daily low. A sustained upside momentum 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 continued to seesaw around the psychologically important .7500 handle as the price action remained confined to a sideways trading range.. As pair reverses direction, the next move to the downside will most likely see the US dollar traders target .7503, a level established by the 50.0 Fib of the .7798-.7236 USD rally. A move below the psychologically important .7500 handle will most likely see the pair head lower and aim for .7439, a 38.2 Fib of the .7798-.7236 USD rally and with a sustained momentum to the downside most likely seeing the US dollar longs take on .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 25.39, signaling an existence of a trend, not a direction of one, while overbought Stochastic gives greenback longs a chance to retaliate.

NZD/USD - New Zealand dollar bulls continued to bounce in a tight trading range as price action became even more volatile following the inability by the Kiwi traders to push the pair above .6984, a level established by the combination of the 38.2 Fib of the 7468-.6681 USD rally and 200-day SMA. Given rejection of the offers around .7000 handle, a reversal will most likely see the pair tumble toward .6912, a 50-day SMA and with a break below take on.6871, a 23.6 Fib of the 7468-.6681 USD rally. A further move on the part of the greenback traders will most likely see the pair extend its move to the downside and target the 20-day SMA at .6843 and with further collapse seeing NZD/USD take on the Kiwi's bids around .6781, a level established by the January 3 daily low. Indicators are mixed with positive momentum indicator diverging from the negative MACD, while overbought Stochastic gives greenback longs a chance to retaliate.

Sam Shenker is a Technical Currency Analyst for FXCM.