EUR/USD - Euro bulls continued to keep the dollar bulls at bay as price action remained confined to a narrow trading range with the pair slowly edging toward the psychologically important 1.2000 handle, a level defended by the key 38.2 Fib of the 1.2588-1.1639 USD rally. A subsequent reversal will most likely see the dollar bulls resume their advance and once again push the pair to the downside and with a move below 20-day SMA at 1.1930 most likely seeing the pair target bids around 1.1864 level, a level established by the 23.6 Fib of the 1.2588-1.1639 USD rally. A further move to the downside will most likely see EUR/USD head lower and target euros bids around 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. 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 pushed the pair below 119.00 figure as greenback longs saw their rally temporary stall. As dollar longs regroup and break above 119.00 a further move to the upside will most likely see the greenback traders resume their rally and target yen offers around 119.36, a level defended by the February 3 daily high. A further move 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 sustained momentum on the part of the greenback longs will most likely see the USD/JPY head higher and test the yen offers around 121.39, a level marked by the 2005 High. Indicators are favoring dollar longs with both positive momentum indicator and MACD treading above the zero line, while neutral oscillators give either side enough room to maneuver. 

GBP/USD - British pound longs managed to temporarily stall the dollars advance as pair remained in the vicinity of the 1.7391, a level defended by the 23.6 Fib of the 1.8500-1.7048 USD rally. As the dollar bulls regroup and launch a counteroffensive, the next move to the downside will most likely target 1.7312, a level marked by the July 8 daily low and with sustained momentum 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 favoring dollar longs with both negative momentum indicator and negative MACD trading below the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CHF - Swiss Franc bulls managed to push the pair below 1.3100 figure, a level defended by the 20-day SMA, after the greenback bulls failed to keep up the momentum of their advance. As dollar longs regroup and resume their advance, a further move to the upside will most likely see the USD/CHF 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 greenback bulls push their way toward 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 dollar bulls with both positive momentum indicator and positive MACD treading above the zero line, while neutral oscillators give either side enough room to maneuver.

USD/CAD - Canadian dollar bulls continued to defend the 1.1600 figure, a level defended by the 23.6 Fib of the 1.2799-1.1297 CAD rally at 1.1639 after the US dollar longs failed to gain momentum above the figure. A subsequent reversal will most likely see Loonie traders launch a countermove and with a move to the downside targeting greenback bids around the psychologically important 1.1500 handle, a level defended by the combination of the 50-day and 20-day SMA's. A further move on the part of the Canadian dollar longs will most likely see the pair extend its decline below the 1.1400 handle and target greenback bids around 1.1372, a level defended by the January 31 daily low. Indicators are mixed with positive momentum indicator diverging from negative MACD above the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/USD - Australian dollar bulls remained sideways trading range after the AUD/USD failed to recapture the offers above .7344, a level marked by the February 22 daily low. As US dollar bulls continue their advance, a break to the downside will most likely see the pair 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 give up further ground the advancing US dollar bulls as pair continued to trend. As greenback longs continue to gain further ground, a further move to the downside will most likely see the pair head below .6300 figure and target Kiwi's bids around .6246, a level marked by the 78.6 Fib of the .5914-.7466 NZD rally. A further move to the downside will most likely see the pair extend its decline below .6200 figure and target Kiwi's bids around .6155, a level defended by the June 3, 2004 daily low, 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 40.95 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.