EUR/USD – Euro bulls continued to head lower 1.1900 figure as the dollar longs pushed the pair toward 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 greenback bulls push the EUR/USD lower and target single currency bids around 1.1778, a level established by the December 30 daily low. A sustained momentum on the part of the dollar longs will most likely see the pair break 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 their retreat after failing to test the 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 further move to the upside and with a move above 119.00 figure most likely see the USD/JPY target the offers around 119.93, a level defended by the November 28 daily high and a gateway toward the psychologically important 120.00 handle. A further move to the upside will most likely see the pair head higher and target the yen offers around 121.39, a level marked by the 2005 High. A further move to the upside will most likely see the dollar longs break above and aim toward 123.25, a level not seen since November 25, 2002. 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 tumbled further below 1.7391, a level defended by the 23.6 Fib of the 1.8500-1.7048 USD rally as greenback longs resumed their advance and pushed the pair toward 1.7312, a level marked by the July 8 daily low. As dollar longs push the pair lower, a further collapse of the sterling defenses 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 gave up more territory to the advancing dollar longs as the greenback traders continued to challenge the upper boundary of the recent consolidation range. As dollar bulls continue their advance, a sustained move above the 1.3100 figure will most likely see the greenback bulls 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 momentum 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 bulls continued to keep the pair below 1.1571, a level marked by the 50-day SMA as price action stalled below the 1.1600 figure. As greenback longs resume their advance and push the pair above 1.1600 figure, the next move to the upside will most likely target the Loonie 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 USD/CAD 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 greenback traders target the Canadian dollar 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 positive momentum indicator diverging from negative MACD, while neutral oscillators give either side enough room to maneuver.

AUD/USD – Australian dollar bulls continued to resist the advancing greenback longs as pair stalled above .7362, a level marked by the 23.6 Fib of the .7798-.7236 USD rally. As US dollar longs push the pair lower, a breakdown will most likely see the AUD/USD tumble lower and aim for the bids around .7321, a level created by the November 24 daily low. A further advance on the part of US dollar longs will most likely see the AUD/USD collapse below .7300 figure and target Australian dollar 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 Australian dollar bulls a chance to retaliate

NZD/USD – New Zealand dollar longs tumbled below the .6700 figure as greenback traders crashed through the Kiwi’s bids around .6690, a level defended by the 50.0 Fib of the .5914-.7466 NZD rally. As US dollar traders push the pair lower, a further move 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 sustained breakdown 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 see the pair head lower and test the bids around .6414, September 4, 2004 daily low. 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.