By DailyFX – EUR/USD * Euro bulls continued to tread sideways as pair failed to advance toward the greenback offers around 1.2200 figure.As single… … currency longs resume their
advance and push the pair higher, a further move to the upside will most likely see
EUR/USD break above the dollar offers around 1.2189, a level marked by the January
31 daily high. A sustained momentum on the part of the euro bulls will most likely
see the pair head higher and test offers 1.2225, a level created by the 61.8 Fib of
the 1.2588-1.1639 USD rally. A further advance by the single currency longs will
most likely see EUR/USD target the greenback offers around 1.2322, a level marked by
the January swing high and with further advance on the part of the Euro bulls seeing
EUR/USD target greenback offers around 1.2385, a level defended by the 78.6 Fib of
the 1.2588-1.1639 USD rally. Indicators are favoring Euro longs with both positive
momentum indicator and MACD treading above the zero line, while neutral oscillators
give either side enough room to maneuver.

USD/JPY * Japanese Yen longs failed to push back their greenback counterparts as
pair remained above the 116.00 figure after a last week's yen rally. As yen traders
consolidate their gains and resume their advance, a further move to the downside
will most likely see the pair break below greenback defenses around 115.93, a level
created by the January 17 daily high. A sustained momentum to the downside will most
likely see the USD/JPY target greenback bids below the psychologically important
115.00 handle at 114.80, a level established by the 38.2 Fib of the 104.16-121.46
USD rally. However in case yen bulls fail to hold back the greenback longs and
retreat above 117.00 figure, a level defended by the combination of the 20-day and
50-day SMA, with a further move to the upside most likely seeing the pair extend its
advance above the 117.35, a level established by the 23.6 Fib of the 104.16-121.46
USD rally, breaking of which will most likely see USD/JPY head above 118.00 figure.
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.

GBP/USD * British pound longs failed to push the pair higher with GBP/USD sliding
below 1.7540, a level marked by the 50-day SMA. As cable bulls resume their advance
and push the pair to the upside, a break above 1.7610, a level established by the
38.2 Fib of the 1.8500-1.7048 USD rally will most likely see the sterling longs
target 1.7677, a level defended by the 200-day SMA. A further move on the part of
the sterling bulls will most likely see the pair extend its rally toward 1.7721, a
level marked by the 50.0 Fib of the 1.8500-1.7048 USD rally. However in case pound
bulls fail to hold the pair above the psychologically important 1.7500 handle, a
decline below will most likely see GBP/USD target pound bids around 1.7462, a level
marked by the 20-day SMA. 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 continued to tread sideways after failing to break below
the dollar bids around 1.2890, a level established by the 38.2 Fib of the
1.2240-1.3285 USD rally and is further reinforced by the 200-day SMA as overall
price action remained in favor of Swissie bulls. A confirmed break below the
greenback bids will most likely see the USD/CHF head below 1.2800 figure and extend
its decline toward 1.2769, a level defended by the 50.0 Fib of the 1.2240-1.3285 USD
rally. A sustained momentum of the Swiss Franc advance will most likely see the pair
extend its decline below 1.2700 figure and challenge greenback bids around 1.2639, a
level marked by the 61.8 Fib of the 1.2240-1.3285 USD rally. However in case Swiss
Franc bull fail to control the price action, a move above the psychologically
important 1.3000 handle will most likely see the pair target Swissie offers around
1.3037, a level marked by the 38.2 Fib of the 1.2240-1.3285 USD rally. 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.

USD/CAD * Canadian dollar bulls lost control of the price action to the US dollar
counterparts as USD/CAD headed above the 1.1600 figure. A further move to the upside
will most likely see the pair head higher and with a move above 1.1639, a level
marked by the 23.6 Fib of the 1.2799-1.1297 CAD rally seeing USD/CAD head above the
1.1700 figure. A further move on the part of the greenback longs will most likely
see the pair extend its advance and target Loonie offers around 1.1748, a level
marked by the January 9 daily high. A further move to the upside will most likely
see USD/CAD advance above 1.1800 figure and with sustained momentum targeting
1.1848, a level defended by the 38.2 Fib of the 1.2799-1.1297 CAD rally. .
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.

AUD/USD * Australian dollar bulls continued to gain terminal velocity as pair
tumbled like toward Aussie bids around .7178, a level marked by the August 9, 2004
daily high. A further move to the downside will most likely see the pair head lower
and with a break below .7100 figure most likely seeing AUD/USD head toward .7038, a
level defended by the 78.6 Fib of the .6780-.7986 AUD rally. A further move to the
downside will most likely see greenback longs push the pair below the
psychologically important .7000 handle. A sustained momentum on the part of the
greenback longs will most likely see AUD/USD head lower and target Aussie bids
around .6932, a level marked by the July 29, 2004 daily low .Indicators are favoring
US dollar trader with both negative momentum indicator and negative MACD treading
below the zero line, while neutral oscillators give either side enough room to
maneuver.

By DailyFX