EUR/USD - Euro bulls began to slowly retreat after the greenback longs managed to push the pair below 1.2115, a level established by the 50.0 Fib of the 1.2588-1.1639 USD rally. A further move by the dollar traders 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 and the 20-day SMA, and with a break below most likely seeing greenback longs gain downside momentum and push the pair below 1.1932, a level established by the December 28 daily high. A further collapse of the euro bids will most likely see the pair extend its decline toward 1.1864, a level marked by the 23.6 Fib of the 1.2588-1.1639 USD rally and further reinforced by the 50-day SMA at 1.1889. Indicators are favoring euro longs with both positive momentum indicator and MACD treading above the zero line, while neutral oscillators give the pair enough room to maneuver.

USD/JPY - Japanese Yen bulls managed to temporality halt the greenback advance as pair stalled above the psychologically important 115.00 handle. As further move to the upside will most likely see the greenback longs test the offers around 115.53, a level established by the December 28 daily high and with sustained momentum seeing dollar trader test yen offers around 116.46, a level established by the January 5 daily high and is further reinforced by the 20-day SMA at 115.79. A further move on the part of the dollar bulls will most likely see USD/JPY head above 116.00 figure and target 116.46, a level created by the January 5 daily high. Indicators are favoring the Japanese Yen longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 40.27, signaling an existence of a maturing trend, not a direction of one, while neutral oscillators give the pair enough room to maneuver.

GBP/USD - British pound bulls failed to stop the attack launched by the dollar bulls as pair broke below 1.7604, a level marked by the 38.2 Fib of the 1.8500-1.7048 USD rally. As dollar longs 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 1.7497. A further move to the downside will most likely see the GBP/USD head lower and with a move below 1.7435, a 50-day SMA take on the cable bids around 1.7391, a level defended by the 23.6 Fib of the 1.8500-1.7048 USD rally. 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 retaliate.

USD/CHF - Swiss Franc bulls failed to stop the dollar longs as greenback traders managed to establish the dominance over the price action and pushed the pair above the 1.2800 figure. As USD/CHF heads higher, the next move to the upside will most likely see the pair test the Swiss Franc offers around 1.2885, a level established by the 38.2 Fib of the 1.2240-1.3285 USD rally. A further move to the upside will most likely see dollar traders push the pair toward the psychologically important 1.3000 handle and with a move above take on the Swissie offers around 1.3037, a level marked by the 23.6 Fib of the 1.2240-1.3285 USD rally. A sustained momentum on the part of the greenback longs will most likely see the dollar bulls take on Swissie offers around 1.3159, a level created by the January 3 daily high. Indicators are favoring the Swiss Franc longs with both negative momentum indicator and MACD below the zero line, with ADX above 25 at 29.83, 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 lost their horns during the latest clash with the US dollar longs as pair broke above 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 and with sustained momentum on the part of US dollar traders will most likely seeing the USDCAD aim toward 1.1927, a level created by the key 38.2 Fib of the 1.2733-1.1433 CAD rally, which currently acts as a gateway toward the psychologically important 1.2000 handle. A move above 1.2000 figure will most likely see the pair extend its ascent above 1.2022, a level marked by the 200-day SMA. 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 bulls saw the pair enter a freefall as it tumbled toward .7439, a 38.2 Fib of the .7798-.7236 USD rally. A further momentum to the downside most likely see greenback longs test the bids around .7406, a combination of the 20-day and 50-day SMA's. A sustained move to the downside will most likely see the pair head lower and with a move below .7400 figure target the Aussie offers around .7361, a level created by the 23.6 Fib of the .7798-.7236 USD rally. A further move on the part of the US dollar longs will most likely see the pair extend its decline below .7321, a level defended by the November 24 daily low. Indicators are supporting Australian dollar longs with both positive momentum indicator and positive MACD above the zero line, while overbought Stochastic gives greenback longs a chance to retaliate.

NZD/USD - New Zealand dollar continued to tumble like a rock with the pair falling below the .6800 figure as downside momentum accelerated. As Kiwi heads lower, a move below .6781, a level created January 3 daily low, a further move to the downside will most likely target .6690, a level marked 50.0 Fib of the .5914-.7466 NZD rally. A sustained momentum on the part of the US dollar longs will most likely see the pair head below .6615, a level defended by the July 19, 2004 daily high, and is currently acting as a gateway toward the psychologically important .6500 handle. 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.