AUD/CAD - Canadian dollar longs continued to put pressure on the Australian dollar bulls as the cross remained confined to a tight trading range since the beginning of the month. As Aussie longs give up further ground to the Loonie longs, a move to the downside will most likely see the cross 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, thus seeing the Aussie longs give up the psychologically important .8500 handle. Indicators signal trending conditions with ADX above 25 at 28.38, 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 saw the cross establish multi-year highs as Australian dollar bulls made their way above the 87.00 handle. 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 86.40, a level established by the 50-day SMA. A sustained momentum to the downside will most likely see the Australian dollar longs head toward the channel's lower boundary and see the yen longs test the bids around 85.58, a level established by the 23.6 Fib of the 77.00-88.09 AUD rally. Indicators are favoring the Australian dollar longs with both the momentum indicator and positive MACD abovezero line, while neutral oscillators give either side enough room to maneuver.

AUD/NZD - New Zealand dollar bulls continued to keep the Australian dollar bulls to a narrow trading range as the cross remained confined to the triangle's lower boundary. A move to the upside will most likely see the Australian dollar longs push their antipodean neighbors higher, and with a move to the upside most likely seeing the Aussie bulls test the 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 26.69 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.