EUR/USD - Euro bulls continued to retreat as dollar managed to push the pair below 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 longs target single currency bids around 1.1778, a level established by the December 30 daily low and with sustained momentum most likely seeing the EUR/USD break below the 1.1704, a level marked by the December 7 daily low. A sustained momentum in the part of the greenback longs will most likely target 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 which will most likely see the pair decline toward 1.1000. Indicators are favoring dollar longs with both negative momentum indicator and MACD trading below the zero line, while neutral oscillators give either side enough room to maneuver.

USD/JPY - Japanese Yen longs continued to push the pair lower and broke below 116.76, a level marked by the 50-day SMA. A further move to the downside will most likely see the yen longs move toward the psychologically important 115.00 handle and target dollar bids around 114.80, a level established by the 38.2 Fib of the 104.16-121.46 USD rally. A further move on the part of the Japanese yen longs will most likely see the pair extend its decline toward 113.87, a level defended by the 200-day SMA and with sustained momentum to the downside most likely seeing the USD/JPY break below 113.00 figure and targeting the greenback defenses around 112.80, a level created by the 50.0 Fib of the 104.16-121.46 USD rally. Indicators are mixed with negative momentum indicator diverging from positive MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

GBP/USD - British pound longs continued to head lower as greenback longs pushed the pair below the 1.7400 figure during another bout of dollar bullishness. As dollar bulls continue their advance, a move below 1.7391, a level defended by the 23.6 Fib of the 1.8500-1.7048 USD rally, will most likely see GBP/USD collapse toward 1.7312, a level marked by the July 8 daily low. A sustained momentum to the downside will most likely see the greenback bulls extend their rally below the 1.7200 figure and target sterling bids around 1.7188, a level established by the January 3 daily low. A sustained move on the part of the dollar traders will most likely see the pair 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 neutral oscillators give either side enough room to maneuver.

USD/CHF - Swiss Franc bulls continued to retreat as pair once again came under pressure from the dollar longs as greenback traders made their way above 1.3201, a level established by December 30 daily high. A further move to the uppside will most likely see the pair 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. A sustained momentum on the part of the dollar bulls will most likely see USD/CHF extend its rally toward 1.3605, a level created by the November 7, 2003 daily low. Indicators are favoring the dollar longs with both positive momentum indicator and MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar bulls managed to keep the psychologically important 1.1500 handle, a level defended by the 20-day SMA as US dollar longs failed to gain momentum after launching a countermove. As greenback traders once again try to advance, a further move o the upside will most likely see the USD/CAD head above the 1.1613, a level defended by the February 14 daily high and target Canadian dollar offers around 1.1697, a level established by the 23.6 Fib of the 1.2733-1.1373 CAD rally. However, in case Canadian dollar bulls manage to take control of the price action and push the pair lower, a break below 1.1455, a level marked by the January 4 daily low, will most likely see the pair extend its decline toward 1.1374, a level marked by the January 31 daily low. A further break to the downside will most likely see USD/CAD extend its decline toward 1.1249, a level marked by the 1.00 Fib Extension of the Nov-Dec CAD rally. 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 remained below. 7418, a level marked by the 23.6 Fib of the .7798-.7236 USD rally after the Aussie longs failed to push the pair higher toward .7433. As pair remains confined to a narrow consolidation range a move on the part of the US dollar longs will most likely see AUD/USD test Aussie the bids around .7321, a level created by the November 24 daily low, and with a break below most likely seeing the AUD/USD break .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 US 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 failed to keep the pair above the .6600 figure after encountering active US dollar offers around .6615, a level marked by the July 19, 2004 daily high. As greenback bulls resume their attack and push the pair lower, a further move to the downside will most likely see the greenback bulls test New Zealand dollar defenses around .6507, a level established by the 61.8 Fib of the .5914-.7466 NZD rally. A break below the psychologically important .6500 handle will most likely see the pair head lower and test the bids around .6414, September 4, 2004 daily low. A sustained momentum on the part of the US dollar traders will most likely see the pair extend its decline below the .6300 figure and target the New Zealand dollar offers around .6246, a level defended by the 78.6 Fib of the .5914-.7466 NZD rally Indicators are favoring US dollar longs with both negative momentum indicator and positive MACD above the zero line, while ADX above 25 at 29.17 signals an existence of a trend, not a direction of one, with oversold Stochastic adding to a trending outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.