EUR/USD ââ,¬â€œ Euro bulls managed to hold the pair below the 1.2100 figure as the initial thrust by the dollar longs lost momentum. As greenback traders resume their advance, a 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 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 overbought Stochastic gives dollar longs a chance to retaliate.

USD/JPY - Japanese Yen bulls continued to keep the pair in tight range as price action stalled after the USD/JPY failed to advance above the 20-day SMA at 115.76. A successful move on the part of the dollar traders 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 bulls test yen offers around 116.46, a level established by the January 5 daily high. 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 39.43, signaling an existence of a maturing trend, not a direction of one, while neutral oscillators give the pair enough room to maneuver.

GBP/USD ââ,¬â€œ British pound bulls managed to stop the initial attack launched by the dollar bulls as pair continued to bounce below 1.7604, a level marked by the 38.2 Fib of the 1.8500-1.7048 USD rally. As dollar longs resume their advance and push the pair lower, a sustained 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 1.7439, 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 ââ,¬â€œ Swiss Franc bulls managed to keep the pair below 1.2900 figure as greenback traders failed to advance above 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 ââ,¬â€œ Canadian dollar bulls came out in force and shoved the pair back below 1.1741, a level established by the 23.6 Fib of the 1.2733-1.1433 CAD rally after their greenback counterparts lost the momentum of the advance which initialy pushed the pair above the 1.1800 figure. As dollar longs regroup and launch a counterattack, a further move to the upside will most likely see the greenback bulls push the pair above 1.1741 and extend their gains toward 1.1803, a level marked by November 10 daily low and with further 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 ââ,¬â€œ Australian dollar bulls managed to stop the freefall as pair failed to reach the Aussie bids around .7439, a 38.2 Fib of the .7798-.7236 USD rally. As greenback traders shake off the weakness and resume their downside momentum, the next move will most likely see greenback longs push the pair below .7439 and test the bids around 7406, a combination of the 20-day and 50-day SMAââ,¬â"¢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 ââ,¬â€œ New Zealand dollar bulls managed to hold the .6800 figure as downside momentum slowed above .6781, a level established by the January 3 daily low. As Kiwi heads lower, a move below .6781 will most likely see the pair once again gain momentum and with a further move to the downside most likely targeting .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.