AUD/CAD - Canadian dollar longs continued to keep the Australian dollar counterparts in a tight trading range as the price action was going nowhere fast. As Aussie longs give up further ground to the Loonie longs, a move to the downside will most likely see the cross break the Aussie defenses around .8698, a 61.8 Fib of the .7548-1.0561 AUD rally and head toward .8590, a level established by the October 15, 2002 daily low. A further collapse of the Australian dollar defenses will most likely see the cross test the bids around .8439, a level marked by the September 4, 2002 daily low. Indicators signal trending conditions with ADX rising above 25, with both momentum indicator and MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/JPY - Japanese yen bulls once again retreated toward the multi year highs as Australian dollar bulls decided to launce another counterattack. As the price action once again sides with the Japanese yen longs, a move to the downside will most likely see the yen bulls taking on Aussie bids around 85.11, a level marked by the 23.6 Fib of the 77.00-87.62 AUD rally. A sustained momentum to the downside will most likely see the Australian dollar longs break below the channel's lower boundary and see the yen longs test the bids around 83.66, a level established by the 38.2 Fib of the 77.00-87.62 AUD rally. Indicators are diverging, with momentum indicator below the zero line and MACD sloping downward toward the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/NZD - New Zealand dollar bulls managed to push back the advancing Australian dollar bulls. As the cross remains confined to a large triangle, a bounce of the triangle's lower boundary will most likely see the Australian dollar longs once again push their antipodean counterparts higher, with a move to the upside most likely seeing the cross test Kiwi's offers around 1.0816, a level marked by the 61.8 Fib of the 1.0567-1.1219 AUD rally. A sustained momentum to the upside will most likely see the Aussoe longs taking on the 1.1065, a 50.0 Fib of the 1.0567-1.1219 AUD rally. Indicators remain in favor of the New Zealand dollar longs with both momentum indicator and MACD below the zero line, with ADX above 25 at 29.89 signaling an existence of a fading trend, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.