AUD/CAD - Canadian dollar traders continued to keep the cross confined to a narrow trading range with the price action revolving around .8696, a level established by the 61.8 Fib of the .7548-1.0561 AUD rally. As market remains indecisive a move by the Australian dollar longs will most likely see the cross head above the .8700 handle and test the Loonie offers around .8773, a level marked by the 50-day SMA. However given the neutrality of the current price action, a break below the .8600 figure 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 bids around the psychologically important .8500 handle. Indicators signal trendless conditions with ADX below 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 traders finally managed to retake some of the territory previously lost to their Australian counterparts, with the cross staging a sharp correction toward the psychologically important 90.00 handle. Given the recent price action and an exhaustion of the Aussie rally, a break below the 90.00 figure will most likely see the cross head lower and with sustained momentum take on the bids below the 89.00 level. A break below 89.00 will most likely see the cross head lower and test the bids around 88.03, a level established by the 23.6 Fib of the 77.00-91.44 AUD rally and the 20-day SMA. Indicators signal trending market conditions with ADX above 25 at 36.35 signaling an existence of a trend not a direction of one, with both momentum indicator and MACD above the zero line, while overbought oscillators add to the trending outlook.

AUD/NZD - New Zealand dollar bulls failed to maintain momentum below the 1.0500 handle as the cross sharply rallied toward the downward sloping channel's upper boundary. A close above the 1.0500 will most likely see Australian dollar traders gather their numbers and push their New Zealand dollar counterparts above 1.0600 handle, a level defended by the combination of the 20-day SMA and the 23.6 Fib of the 1.1162-1.0442 NZD rally. A break above will most likely see the Aussie longs sweep clean the stops strategically placed above the 1.0650 by the Kiwi longs, doing so add to the upside momentum with the cross aiming for the 1.0717, a level established by the 38.2 Fib of the 1.1162-1.0442 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 34.76 signaling an existence of a fading trend, while oversold Stochastic adds to the trending outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.