EUR/USD - Euro bulls once again were in full retreat after the greenback longs managed to push the pair below 1.2115, a level marked by the 50.0 Fib of the 1.2588-1.1639 USD rally.  As euro bulls continue to retreat, a further move to the downside will most likely see the pair extend its decline below the psychologically important 1.2000 handle, a level established by the 38.2 Fib 1.2588-1.1639 USD rally. A sustained downside momentum will most likely see greenback traders push the pair lower and test the euro's bids around 1.1961, a 50-day SMA and with sustained momentum to the downside most likely seeing EUR/USD tumble toward 1.1865, a 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 neutral oscillators give the pair enough room to maneuver.

USD/JPY - Japanese Yen longs felt the full brunt of the countermove launched by the dollar bulls as pair once again retreated above the 118.00 figure. A further move to the upside will most likely see USD/JPY head higher and with a move above 119.93, a level established by November 28 daily high, which also acts as a gateway toward the psychologically important 120.00 handle. A sustained momentum to the upside will most likely see the pair gain further upside momentum and with a break above the psychologically important 120.00 handle, most likely aiming for 121.39, a level defended by the 2005 High and a start of the previous anti-dollar rally. A move following the breakout will most likely see the pair extend its gains toward 123.25, a level established by the November 25, 2002 daily high. Indicators are mixed with positive momentum indicator above the zero line and MACD below the zero line, with ADX above 25 at 28.63, signaling an existence of a maturing trend, not a direction of one, while overbought Stochastic adds to the trending outlook.

GBP/USD - British pound longs failed in their quest to recapture the 1.7776, a level established by the 50.0 Fib of the 1.8500-1.7048 USD rally, and began to retreat toward the 1.700 figure. A further move to the downside most likely see the dollar traders test the bids around 1.7605, a level marked by the key 38.2 Fib of the 1.8500-1.7048 USD rally and with further move to the downside most likely seeing the greenback test sterling defenses around psychologically important 1.7500 handle, a level defended by the combination of the 50-day SMA and December 2 daily high at 1.7487. A sustained momentum of the part of the dollar traders will most likely see GBP/USD retreat further and with further move to the downside take on pound bids around 1.7393, a 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 neutral oscillators give the pair enough room to maneuver.

USD/CHF - Swiss Franc bulls hastily retreated above the 1.2900 figure after failing to reestablish their dominance over the price action. As sustained break above 1.2885, a level established by the 38.2 Fib of the 1.2240-1.3285 USD rally will most likely see the pair head higher and aim for the Swiss Franc offers around 1.2933, a level marked by the 50-day SMA. A further move on the part of the dollar bulls will most likely see USD/CHF head above the psychologically important 1.3000 handle and test the Swiss France offers around 1.3037, a level established by the 23.6 Fib of the 1.2240-1.3285 USD rally. A further collapse of the Swissie's offers will most likely see the pair head higher and aim for 1.3201, a level established by December 30 daily high. Indicators are mixed with positive momentum indicator above the zero line and MACD below the zero line, while neutral oscillators give the pair enough room to maneuver.

USD/CAD - Canadian dollar traders once again pushed the pair below 1.1400 figure as a move below the current levels will most likely signal a start of another major USD/CAD rally. As Loonie bulls push the pair lower, a break to the downside will most likely see the pair extend its decline and with a move below 1.1300 figure targeting potential support at 1.1249, a level marked by the 1.00 Fib Extension of the Nov-Dec CAD rally. A further move on the part of the Loonie longs will most likely see the USD/CAD extend its decline toward the psychologically important 1.1000 handle, a level defended by the 1.382 Fib Extension of the Nov-Dec CAD rally at 1.1040. A sustained momentum on the part of the Canadian dollar longs will most likely see the greenback longs retreat below the psychologically important 1.1000 handle and mount defense around 1.0910, a level marked by the 1.618 Fib Extension of the Nov-Dec CAD rally. Indicators are favoring Canadian dollar longs with both negative momentum indicator and MACD below the zero line, while oversold Stochastic gives the greenback longs a chance to retaliate.

AUD/USD - Australian dollar bulls failed to keep the pair above .7564, a level defended by the combination of the 61.8 Fib of the .7798-.7236 USD rally and 200-day SMA, and once again retreated toward the psychologically important .7500 handle, a level marked by the 50.0 Fib of the .7798-.7236 USD rally. A further a move to the downside will most likely see the pair test the Aussie bids around .7437, a level established by the 38.2 Fib of the .7798-.7236 USD rally and is further reinforced by the 50-day SMA at .7444. A further move on the greenback traders will most likely see AUD/USD head lower and with a break below the 7400 figure test the Australian dollar bids around.7362, a level marked by the 23.6 Fib of the .7798-.7236 USD rally. A further move on the part of the US dollar traders will most likely see the pair tumble further and aim for the bids around .7321, a level created 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 neutral oscillators give either side enough room to maneuver.

NZD/USD - New Zealand dollar continued to bounce in a tight trading range as the price action remained within vicinity of .6873, a level marked by the 38.2 Fib of the.5914-.7466 NZD rally and is further reinforced by the 20-day SMA. In case Kiwi longs fail to gain momentum, a reversal from the current levels will most likely see the pair head below the .6800 level and test the New Zealand dollar bids around .6741 a level established by the November 8 daily low. A further move on the part of the greenback longs will most likely see NZD/USD test extend its decline toward .6690, a level defended by the 50.0 Fib of the .5914-.7466 NZD rally, with a further break to the downside aiming for New Zealand dollar bids around .6615, a level marked by the July 19, 2004 daily high.  Indicators are favoring US dollar longs with both negative momentum indicator and positive MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.