AUD/CAD - Canadian dollar bulls continued to tread sideways as cross remains confined to a narrow trading range with the price action revolving around .8600 handle. As market remains in a trading range, a move by the Australian dollar trades will most likely see the AUDCAD head above .8696, a level established by the 61.8 Fib of the .7548-1.0561 AUD rally and test the Loonie offers around .8776, a level marked by the November 21 daily high. However given the trading range conditions, 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 are favoring the Canadian dollar longs, with both negative momentum indicator and MACD treading below the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/JPY - Japanese yen traders remain on the offer side of the market as the cross sharply collapsed from recent multi-year highs and temporarily landed on top of the Aussie bids around 85.86, a level established by the 38.2 Fib of the 77.00-91.44 AUD rally. As the Japanese yen bulls resume their advance, the next move to the downside will most likely see the AUD/JPY tumble further and test the Australian dollar bids below the psychologically important 85.00 figure, at 84.60, a level created by the 200-day SMA. A sustained momentum to the downside will most likely see the AUDJPY break below 84.15, a 50.0 Fib of the 77.00-91.44 AUD rally. Indicators are mixed with momentum indicator below the zero line and positive MACD sloping downward toward the zero line, while ADX above 25 at 36.39 signals an existence of a trend, not a direction of one, with neutral oscillators give either side enough room to maneuver.

AUD/NZD - New Zealand dollar bulls gave up more territory to the advancing Australian dollar counterparts as the antipodean cross remains in the vicinity of the 1.0796, a level marked by the 50.0 Fib of the 1.1162-1.0442 NZD rally. A further move to the upside will most likely see the pair head higher and aim for offers around 1.0880, a level established by the 61.8 Fib of the 1.1162-1.0442 NZD rally. Another move by the Aussie longs will most likely see the AUDNZD head higher and test the Kiwi's offers around 1.0961, a level created by the September 8 daily high. A sustained momentum on the part of the Australian dollar traders will most likely see cross test 1.0998, a 78.6 Fib of the 1.1162-1.0442 NZD rally, a level that acts as a gateway to offers above the psychologically important 1.1000 handle. 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 25.63 signaling an existence of a fading trend, while overbought Stochastic gives the New Zealand dollar a chance to retaliate.

Sam Shenker is a Technical Currency Analyst for FXCM.