EUR/USD - Euro bulls saw the bids disappear below their feet as pair tumbled like a rock below the psychologically important 1.2000 handle, a level defended by the 38.2 Fib of the 1.2588-1.1639 USD rally. As dollar bulls consolidate their gains and once again push the pair below 1.1900 figure, a move below 1.1864, a level marked by the 23.6 Fib of the 1.2588-1.1639 USD rally, 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 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 as dollar bulls consolidated their recent gains. A further move on the part of the greenback longs will most likely see the USD/JPY 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 and with confirmed breakout seeing dollar bulls target 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 saw their hopes of dominating the psychologically important 1.7500 handle dashed as pair collapsed below 1.7391, a level defended by the 23.6 Fib of the 1.8500-1.7048 USD rally. A further advance by the dollar bulls will most likely see GBP/USD collapse toward 1.7312, a level marked by the July 8 daily low and with sustained momentum to the downside most likely seeing 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 2005, breaking of which will most likely see the pair gain additional downside 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 gave up offers above 1.3038, a level marked by the 23.6 Fib of the 1.2240-1.3285 USD rally, to the advancing dollar bulls as they pushed the pair higher above the 1.3100 figure. As greenback traders consolidate their gains and resume their advance, a further move to the upside will most likely see the pair extend its advance toward 1.3201, a level established by December 30 daily high. A sustained momentum on the part of the to the upside will most likely see the pair target Swissie's offers around 1.3285, a level established by the 2005 high, and with 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 managed to hold the pair below the psychologically important 1.1500 handle. As Loonie longs head higher, a break above 1.1500 will most likely see the pair target 1.1557, a level established by the February 21 daily low. A further move on the part of the US dollar longs will most likely see the pair extend its rally above 1.1600 figure and target the Canadian dollar offers around 1.1639, a level marked by the 23.6 Fib of the 1.2799-1.1297 CAD rally. A sustained momentum to the upside will most likely see the pair head higher and test the Loonie defenses above the 1.1700 figure at 1.1748, a level defended by the January 9 daily high. 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 received a break after the pair stalled around .7344, a level marked by the February 22 daily low and following the collapse of the bids around .7400 figure. A further move to the downside will most likely see the 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 .7178, a level established by the August 9, 2004. A further move on the part of the greenback longs will most likely see the pair head lower and aim for the Australian dollar bids at .7104, a level established by the September 27, 2004, a further downside momentum will most likely see 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 continued to bounce below the psychologically important .6500 handle after collapse of the Kiwi's bids around .6507, a level established by the 61.8 Fib of the .5914-.7466 NZD rally. A further move 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.