EUR/USD - Euro bulls managed to launch a countermove against the dollar longs with the pair stalling around 1.1940, a level marked by the 20-day SMA. In case euro longs manage to push the pair higher, a move toward the psychologically important 1.2000 handle, a level defended by the 38.2 Fib of the 1.2588-1.1639 USD rally and is further reinforced by the 50-day SMA will most likely see the single currency lose the momentum of their advance and once against head toward 1.1865, a level marked by the 23.6 Fib of the 1.2588-1.1639 USD rally. A further move on the part of the dollar longs will most likely see the pair break lower and target euro's bids around 1.1778, a level established by the December 30 daily low and with sustained momentum to the downside most likely seeing the EUR/USD break below the 1.1704, a level marked by the December 7 daily low. 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 saw their advance stall below the 116.00 figure following a week long anti-dollar rally. In case yen longs manage to continue their advance, a further move to the downside will most likely see the pair 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 114.00, a level defended by the 200-day SMA. However in case yen longs fail to sustain momentum below 116.00, a subsequent reversal will most likely see the greenback longs takeover the price action and with a move above 117.38, a level established by the 23.6 Fib of the 104.16-121.46 USD rally most likely targeting yen offers around 117.77, a level marked by the 20-day SMA. 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 launched a massive countermove against the dollar longs and once against pushed the pair above the psychologically important 1.7500 handle, but failed to advance beyond the greenback offers around 1.7550, a level defended by the 50-day SMA. In case pound longs fail to hold the pair above the 1.7500 figure, a reversal will most likely see the pair head toward 1.7468, a level marked by the 20-day SMA and with a further collapse of the sterling offers targeting 1.7391, a level defended by the 23.6 Fib of the 1.8500-1.7048 USD rally. A further move to the downside will most likely see GBP/USD collapse toward 1.7312, a level marked by the July 8 daily low and with sustained momentum on the part of the greenback longs will most likely seeing the pair extend its decline 1.7200 figure and target pound bids around 1.7188, a level established by the January 3 daily low. Indicators are mixed with positive momentum indicator diverging from negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CHF - Swiss Franc bulls joined the rest of the majors in a massive anti-dollar rally and pushed the pair below the 1.3100 figure, but failed to reach the greenback bids around 1.3041, a level established by the 23.6 Fib of the 1.2240-1.3285 USD rally and is further reinforced by the 20-day SMA at 1.3060. In case greenback traders manage to hold the pair around 1.3100 figure a reversal will most likely see the pair head toward 1.3201, a level established by December 30 daily high. A further move to the upside will most likely see the pair test Swissie's offers around 1.3285, a level established by the 2005 high and with 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 neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar bulls remained in charge of the price action as USD/CAD continued to set multi-year lows. As Loonie longs push the pair further a sustained break below 1.1374, a level marked by the January 31 daily low will most likely see the Canadian dollar trader push USD/CAD below the 1.1300 figure and target greenback bids around 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 pair 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, thus seeing the Canadian dollar enter into a trend mode. A break below 1.1000 will most likely see the pair tumble further and test the US dollar defenses 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 treading below the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/USD - Australian dollar bulls managed to push their US dollar counterparts higher as the pair once against climbed above .7418, a level established by the 23.6 Fib of the .7798-.7236 USD rally. In case Aussie longs manage to gain upside momentum, a further move to the upside will most likely see the pair extend its rally toward .7528, a level marked by the .7798-.7236 USD rally and is further reinforced by the 200-day SMA. However in case US dollar bulls launch a countermove of their own, a move below .7400 figure will most likely see AUD/USD head lower and test Aussie the bids around .7321, a level created by the November 24 daily low. A further break below will most likely see the AUD/USD break .7300 figure and target Aussie bids around .7234, a level defended by the December 27 daily low. Indicators are mixed with positive momentum indicator diverging from negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

NZD/USD - New Zealand dollar longs managed to push the pair above the .6600 figure and tested the 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 greenback bulls test Kiwi's bids around .6507, a level established by the 61.8 Fib of the .5914-.7466 NZD rally. A confirmed 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 31.46 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.