EUR/USD - Euro bulls failed to make significant progress as pair stalled around 1.1940, a level marked by the 20-day SMA. In case euro longs fail to capture 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, a reversal will most likely see the single currency longs collapse below the 1.1900 figure and once again 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 continued to consolidate after the pair failed to hold the offers below the 116.00 figure. In case yen longs manage to push the pair below 116.00 level, a further move to the downside will most likely see the USD/JPY 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. However in case yen longs fail to gain 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 117.65, a level marked by the 20-day SMA. A further move on the part of the greenback longs will most likely see the pair head higher and with a break above 119.36, a level defended by the February 3 daily high, will pave the way for the dollar bulls toward the psychologically important 120.00 handle. 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 managed to keep the pair above the psychologically important 1.7500 handle, but failed to advance beyond the greenback offers around 1.7550-1.7600 zone, a zone defended by the combination of the 50-day SMA and 38.2 Fib of the 1.8500-1.7048 USD rally. 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 saw the momentum of their advance wane into nothingness as pair retreated above the 1.3100 figure following the failure by the Swissie bulls to break below 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 1.3076. In case greenback traders manage to hold the pair above the 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 continued to dominate the price action as USD/CAD maintained downside momentum. As Loonie longs push the pair lower, 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 US dollar 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 continued to push their US dollar counterparts higher as the pair once against climbed above .7437, a level established by 50-day SMA. In case Aussie longs manage to maintain the upside momentum, a further move higher will most likely see the pair extend its rally toward .7528, a level marked by the 38.2 Fib of the .7798-.7236 USD rally and is further reinforced by the 200-day SMA. A further move on the part of the Aussie bulls will most likely see AUD/USD head above the psychologically important .7500 handle and target the greenback offers around .7577, a level defended by the January 16 daily high. A sustained momentum on the part of the Australian dollar trader will most likely see the pair extend its rally above .7600 figure and target .7615, a level established by 23.6 Fib of the .7798-.7236 USD rally. 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 continued to push the pair higher as they broke above the US dollar offers around .6615, a level marked by the July 19, 2004 daily high. As Kiwi longs head higher, a move toward .6690, a level established by the 50.0 Fib of the .5914-.7466 NZD rally, will most likely encounter heavy US dollar offers overhanging the market. A subsequent reversal will most likely see the NZD/USD head lower and with a move below .6600 figure most likely seeing the pair resume its downward trend. 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 and with confirmed break below the psychologically important .6500 handle most likely seeing 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 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.