AUD/CAD - Canadian dollar longs continued to engage the Australian dollar bulls in a showing match as the cross remained in a narrow trading range, As Aussie longs continues to retreat, a further move to the downside will most likely see the Loonie bulls test the bids around .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 Australian dollar defenses 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 28.68, 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 give up further ground to the advancing Aussie longs as the cross continued to set new multi-year highs. As Australian dollar bulls continue to gain more ground and push the cross higher, a sustained momentum will most likely see the cross head higher and test the yen offers around 88.65, a level established by the 61.8 Extension of the Aug/Oct AUD rally. A further move to the upside will most likely see the Aussie longs push their way toward 89.6, a level marked by the 78.6 Extension of the Aug/Oct AUD rally, which also acts as a gateway to the psychologically important 90.00 handle. Indicators are favoring the Australian dollar longs with both the momentum indicator and positive MACD above zero line, while both overbought oscillators give yen longs a chance to retaliate.

AUD/NZD - New Zealand dollar bulls continued to pound their antipodean counterparts into submission and finally succeed in breaking below the psychologically important 1.0500 handle, which opened the field for a substantial move to the downside as cross entered into the previously uncharted territory below the previous all time low of 1.0492, set in August of 1995. A sustained move to the downside will most likely see the cross head lower and test the Australian dollar bids around 1.0452, a level established by the 1.618 Extension of the Aug NZD rally. A further move to the downside will most likely see the AUD/NZD head lower and test the Aussie defenses around 1.0379, a level marked by the 1.786 extension of the Aug NZD 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 32.63 signaling an existence of a fading trend, while oversold Stochastic adds to the trending outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.