EUR/USD - Euro longs remained in a tight trading range after the greenback longs pushed the pair below the 1.1900 figure only to see their initial advance stall above 1.1865, a level marked by the 23.6 Fib of the 1.2588-1.1639 USD rally. A further move to the downside will most likely see the EUR/USD extend its decline and target single currency bids around 1.1778, a level established by the December 30 daily low. A sustained downside momentum on the part of the dollar longs will most likely see the pair head below the 1.1700 figure and target bids around 1.1639, a level established by 2005 low, which currently acts as a gateway toward the psychologically important 1.1500 handle. A further move below the 1.1500 figure will most likely signal that a dollar dominated trend is underway. Indicators are favoring dollar longs with both negative momentum indicator and MACD trading below the zero line, while oversold Stochastic gives the single currency longs a chance to retaliate.

USD/JPY - Japanese Yen longs continued to bounce on top of the dollar bids around 117.31, a level established by the 23.6 Fib of the 104.16-121.46 USD rally and is further reinforced by the combination of the 20-day and 50-day SMA's. A confirmed break below will most likely see the USD/JPY test the dollar bids 115.53, a level marked by the December 19 daily high, which currently acts as a gateway toward the psychologically important 115.00 handle. However in case the yen longs fail to gain momentum below the 117.00 figure, a subsequent reversal will most likely see the pair head higher and target the yen offers around 119.93, a level defended by the November 28 daily high and is currently acting as a gateway toward the psychologically important 120.00 handle. Indicators are favoring the dollar longs with both positive momentum indicator and MACD above the zero line, while overbought Stochastic gives yen longs a chance to retaliate.

GBP/USD - British pound longs continued to keep the pair above the 1.7400 figure, a level defended by the 23.6 Fib of the 1.8500-1.7048 USD rally at 1.7391. As dollar longs resume their advance and push the pair lower, a further collapse of the cable bids will most likely see the greenback longs extend their rally below the 1.7200 figure and target pound bids around 1.7188, a level established by the January 3 daily low. A sustained downside momentum will most likely see the GBP/USD aim for 1.7048, a level defended by the November 11 daily low, breaking of which will most likely see the pair gain additional momentum and head below the psychologically important 1.7000 handle and target the next potential support around 1.6900 figure, a level not seen since October of 2003. Indicators are favoring dollar longs with both negative momentum indicator and MACD trading below the zero line, while oversold Stochastic gives the sterling longs a chance to retaliate

USD/CHF - Swiss Franc bulls broke above the psychologically important 1.3000 handle after the dollar bulls managed to push the pair above the consolidation range. As dollar bulls continue their advance a move above the 1.3100 figure will most likely see the greenback traders extend their rally toward 1.3201, a level established by December 30 daily high and with further momentum to the upside most likely seeing USD/CHF gain further ground and test Swissie's offers around 1.3285, a level established by the 2005 high. A confirmed break above the trading range's high will most likely see the pair aim for the next psychologically important 1.3500 handle, a level defended by the Swiss Franc offers around 1.3446, an October 17, 2003 daily high. Indicators are favoring the dollar longs with both positive momentum indicator and MACD above the zero line, while overbought Stochastic gives yen longs a chance to retaliate.

USD/CAD - Canadian dollar traders failed to keep the pair below the psychologically important 1.1500 handle, following a surprise attack launched by the US dollar counterparts. As greenback longs continue to push the pair higher, a move above 1.1571, a level marked by the 50-day SMA will most likely see the USD/CAD head above 1.1600 figure and target the Canadian dollar offers around 1.1697, a level established by the 23.6 Fib of the 1.2733-1.1373 CAD rally. A further advance on the part of the greenback longs will most likely see the pair retreat head toward the 1.1800 level, a level defended by the January 19 daily high at 1.1797. A further move to the upside will most likely see the US dollar longs target the Loonie offers around 1.1893, a level defended by the 38.2 Fib of the 1.2733-1.1373 CAD rally, which also acts as a gateway toward the psychologically important 1.2000 handle. Indicators are mixed with both positive momentum indicator diverging from negative MACD, while neutral oscillators give either side enough room to maneuver.

AUD/USD - Australian dollar bulls once again failed to keep the pair above the .7400 figure as US dollar traders once again pushed the pair toward .7362, a level marked by the 23.6 Fib of the .7798-.7236 USD rally. A break below will most likely see the AUD/USD head lower and aim for the Aussie bids around .7321, a level created by the November 24 daily low. A further advance on the part of greenback bulls will most likely see the pair collapse head below .7300 figure and target Aussie bids around .7234, a level defended by the December 27 daily low. A sustained break below .7234 will most likely see the US dollar bulls head lower and target the Australian dollar offers around .7130, a level created by the September 29, 2004 daily low, which currently acts as a gateway toward the psychologically important .7000 handle. Indicators are favoring dollar longs with both negative momentum indicator and MACD trading below the zero line, while oversold Stochastic gives the single Australian dollar bulls a chance to retaliate

NZD/USD - New Zealand dollar saw the US dollar longs push the pair below the .6800 level as greenback traders took aim at Kiwi's bids around .6690, a level defended by the 50.0 Fib of the .5914-.7466 NZD rally. A further break to the downside will most likely see the US dollar bulls test New Zealand dollar bids around .6615, a level marked by the July 19, 2004 daily high. A further break to the downside will most likely see the pair take on the NZD defenses around .6507, a level established by the 61.8 Fib of the .5914-.7466 NZD rally which acts as a gateway toward the psychologically important .6500 handle. A break below .6500 will most likely signal a start of the US dollar trend. 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.