EUR/USD - Euro continued to trade within a tight range that dominated the pair since the beginning of the month with neither side managing to gain an upper hand. As price action remains confined to 1.2115, a level established by the 50.0 Fib of the 1.2588-1.1639 USD rally a move by the dollar 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 ADX above 25 at 25.37, signaling an existence of a trend, not a direction of one, while neutral oscillators give the pair enough room to maneuver.

USD/JPY - Japanese Yen remained confined to a consolidation range after the pair took a brief foray above the psychologically important 115.00 handle. As dollar trader once again try to reestablish their dominance over the price action, a sustained 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 further move 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. However in case greenback bulls lose their footing, a move below 113.71, a level established by the July 20 daily high will most likely see the Japanese yen resume its downward motion. Indicators are favoring the Japanese Yen longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 41.69, signaling an existence of a maturing trend, not a direction of one, while oversold Stochastic adds to the trending outlook.

GBP/USD - British pound traders saw their momentum wane into nothingness after the pair failed to advance above 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 clash with their dollar counterparts with neither side managing to gain control of the price action long enough for a decisive move. As USD/CHF remains confined to a narrow trading range, a further move on the part of the dollar trader 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 dollar bulls push the pair 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 remains confined to a narrow trading range as both sides seemed to be equally matched as price action lacks the proper catalyst for a definite move in either direction. 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 failed to push the pair above .7566, a level established by the combination of the 61.8 Fib and 200-day SMA. In case the US dollar longs reestablish their dominance over the price action, 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 26.11, 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 lost the shoving match after failing to recapture the psychologically important .7000 handle, a level defended by 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 .6918, a 50-day SMA, most likely targeting .6871, a 23.6 Fib of the .7468-.6681 USD rally. As US dollar traders continue to add to their positions, the next move to the downside will most likely see US dollar longs test the Kiwi's offers around .6853, a level established by the 20-day SMA. A further move to the downside will most likely see the pair head lower and test the bids around .6781, a level created 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.