EUR/USD - Euro bulls hastily retreated below the psychologically important 1.2000 handle after the dollar longs launched a successful countermove against the advancing single currency longs. As greenback bulls remain in charge of price action, a move below the 1.1900 figure will most likely see the pair head lower and test single currency bids around 1.1859, 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 dollar longs extend their rally toward 1.1778, a level marked by the December 30 daily low, and with sustained momentum most likely seeing the EUR/USD decline toward 1.1704, a level defended by the December 7 daily low. A further collapse of the euro's defenses will most likely see the pair decline toward 1.1639, a level established by the 2005 Low, and acts as a gateway toward the next psychologically important 1.1500 handle. 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/JPY - Japanese Yen longs remained in under pressure as greenback longs pushed the pair above 117.38, a level established by the 23.6 Fib of the 104.16-121.46 USD rally and is further reinforced 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 move above the 118.00-119.00 zone target the yen offers around 119.36, a level defended by the February 3 daily high. A sustained momentum on the part of the greenback bulls will most likely see the dollar bulls push the pair toward the psychologically important 120.00 handle. A break above 120.00 will most likely see USD/JPY extend its rally toward 120.46, a level marked by the December 13 daily high. A further advance on the part of the dollar trader will most likely see the Japanese yen longs retreat toward 121.39, a level defended by the 2005 High. Indicators are favoring Japanese yen longs with both negative momentum indicator and MACD treading below the zero line, while oversold Stochastic gives dollar longs a chance for a extend their rally.

GBP/USD - British pound longs failed to advance above the greenback offers at 1.7604, a level defended by the combination of the 50-day SMA and 38.2 Fib of the 1.8500-1.7048 USD rally, and tumbled back down with accelerating momentum. 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 on the part of the greenback longs will most likely see the greenback bulls 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 further move on the part of the dollar longs 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 thus targeting the next potential support around 1.6900 figure, a level not seen since October of 2003. 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 failed to dominate the price action as pair remained once again headed above the psychologically important 1.3000 handle, and broke above 1.3038, a level marked by the 23.6 Fib of the 1.2240-1.3285 USD rally.  As greenback longs push the pair higher, a move above the 1.3100 figure will most likely see the pair extend its advance 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 with a confirmed break above the trading range's high most likely seeing 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 put the price action on hold as USD/CAD headed above the 1.1400 figure after setting new multi-year low at 1.1300. As Loonie longs retreat to the upside, a break above 1.1453, a level marked by the February 21 daily low, will most likely see the pair head higher and with a move above the psychologically important 1.1500 targeting 1.1557, a level established by the February 21 daily low. However in case the Canadian dollar bulls resume their advance and push the pair below 1.1400 figure, a breakdown below 1.1300 level will most likely see the Canadian dollar longs test 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. Indicators are favoring Canadian dollar longs with both negative momentum indicator and MACD treading below the zero line, while oversold Stochastic gives the greenback traders a chance to retaliate.

AUD/USD - Australian dollar bulls once again failed to stave off the counterattack launched by the greenback bulls with the pair collapsing below .7413, a level marked by the 23.6 of the .7798-.7236 USD rally. A further move to the downside will most likely see the pair extend its decline toward .7344, a level marked by the February 22 daily low and with further collapse of the Aussie bids seeing AUD/USD target the Australian dollar defenses around .7234, a level defended by the December 27 daily low. A sustained momentum on the part of the US dollar bulls will most likely see the pair extend it decline toward .7130, a level established by the September 29, 2004, thus seeing AUD/USD enter a trend mode, targeting .6800 handle. Indicators are favoring US dollar longs with both negative momentum indicator and negative MACD treading below the zero line, while neutral oscillators give either side enough room to maneuver.

NZD/USD - New Zealand dollar longs followed through with the reversal and tumbled below the .6600 figure, thus resuming a 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. A further move to the downside will most likely see the pair extend its decline below .6300 figure and target Kiwi's bids around .6246, a level marked by the 78.6 Fib of the .5914-.7466 NZD rally, thus confirming an existence of a trend targeting the psychologically important .6000 handle. Indicators are favoring US dollar longs with both negative momentum indicator and positive MACD above the zero line, while ADX above 25 at 32.51 signals an existence of a trend, not a direction of one, with neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.