EUR/USD - Euro bulls staged an impressive comeback after being battered by the dollar longs during the previous week's price action. As euro longs once again find themselves bouncing around 1.2150, a failure to continue the rally will signal weakness and a move below 1.2115, a level established by the 50.0 Fib of the 1.2588-1.1639 USD rally will add to the bullish outlook for the dollar.   A further move to the downside will most likely see EUR/USD head toward the psychologically important 1.2000 handle, a level defended by the 38.2 Fib of the 1.2588-1.1639 USD rally. However in case single currency traders manage to push the pair above 1.2192, a level created by the 200-day SMA will most likely see the pair extend its gains toward 1.2262, a level marked by the key 61.8 Fib of the 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 continued to bounce in a tight trading range after the pair failed to gain a downside momentum below the 114.00 figure. As greenback bulls once again try to reestablish their dominance over the price action, a move above 114.80, a key 38.2 Fib of the 104.16-141.46 USD rally, will most likely see the pair head above the psychologically important 115.00 handle and take on the yen offers around 115.53, a level established by the December 5 daily. A sustained momentum to the upside will most likely see the greenback bulls take on the yen offers around 116.46, a level established by the January 5 daily high and is further reinforced by the 20-day SMA at 116.05. A further move on the part of the dollar traders will most likely see USD/JPY head 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 41.06, signaling an existence of a maturing trend, not a direction of one, while oversold Stochastic gives dollar longs a chance to retaliate.

GBP/USD - British pound traders came out as champions following last week's volatile price action with sterling longs pushing the pair against 1.7774, a level established by the 50.0 Fib of the 1.8500-1.7048 USD rally. As both sides continue to vie for the dominance, a further move on the part of cable bulls will most likely see the pair head higher and with a move above 1.7912, a level established by the 200-day SMA aim for the psychologically important 1.8000 handle, a level defended by the 61.8 Fib of the 1.8500-1.7048 USD rally at 1.7945. However in case the dollar longs manage to wrest control from the pound bulls and push the pair lower, a move below 1.7604, a level established by the 38.2 Fib of the 1.8500-1.7048 USD rally, will most likely see the greenback longs extend their gains below the psychologically important 1.7500 handle and take on 1.7487, a level established by the January 5 daily high and is reinforced by the 20-day SMA at 1.7473. 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 continued to keep the pair below the 1.2800 figure as price action continued to seesaw around the 50.0 Fib of the 1.2240-1.3285 USD rally at 1.2761. As pair remains confined to a narrow trading range, a further move on the part of the greenback longs will most likely see the pair head higher and test the Swissie offers around 1.2885, a level established by the 38.2 Fib of the 1.2240-1.3285 USD rally. A sustained momentum to the upside will most likely see the pair head toward the psychologically important 1.3000 handle and with a move above take on the Swiss Franc offers around 1.3037, a level marked by the 23.6 Fib of the 1.2240-1.3285 USD rally. However in case the Swissie traders manage to push the pair below 1.2700, a level defended by the 200-day SMA, a further move to the downside will most likely see USD/CHF test the greenback bids around 1.2638. a level marked by the 61.8 Fib of the 1.2240-1.3285 USD rally. Indicators are favoring the Swiss Franc longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 30.16, 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 once again bounced off the 1.1600 figure as the price action remained confined to a narrow trading range. As US dollar traders cement their bids below 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 once again pushed the pair against .7566, a level established by the combination of the 61.8 Fib and 200-day SMA. In case the US dollar longs managed to push the pair lower, a move below the .7503, a level established by the 50.0 Fib of the .7798-.7236 USD rally will most likely see the pair break psychologically important .7500 handle. A further move to the downside 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 .7406, a combination of the 20-day and 50-day SMA's. However in case the Aussie traders manage to gain an upper hand, a move to the upside will most likely see AUD/USD head higher and aim for .7654, a level created by the 78.6 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 25.89, 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 continued to bounce in a tight trading range after the Kiwi traders once again pushed 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. A reversal from current levels will most likely see NZD/USD head lower and with a move below .6917, a 50-day SMA, most likely targeting .6871, a 23.6 Fib of the .7468-.6681 USD rally. However in case Kiwi longs manage to push the pair above the psychologically important .7000 handle, the next move to the upside will most likely see New Zealand dollar longs test the greenback offers around .7038, a level established by the December 8 daily high. A further move to the upside will most likely see the pair climb higher and test the offers around .7076, a level created by the 50.0 Fib of the .7468-.6681 USD rally. 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.