AUD/CAD - Canadian dollar bulls continued to push the cross lower with the price action revolving around the psychologically important .8500 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 .8439, a level established by the September 4, 2002 daily low. A further collapse of the Australian dollar defenses will most likely see the cross test the Australian dollar bids around .8381, a level established by the August 22, 2002 daily low. Indicators are favoring the Canadian dollar longs, with both negative momentum indicator and MACD treading below the zero line, while ADX above 25 at 27.72 signals an existence of a trend, not a direction of one, with neutral oscillators giving either side enough room to maneuver.

AUD/JPY - Japanese yen traders continued to keep a tight lid on the cross as AUD/JPY landed on top of the Aussie bids around 84.66, a level established by the 200-day SMA. 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 84.15, a 50.0 Fib of the 77.00-91.44 AUD rally. A sustained momentum to the downside will most likely see the AUDJPY break below 82.44, a 61.8 Fib of the 77.00-91.44 AUD rally. Indicators are favoring the Japanese Yen longs, with both negative momentum indicator and MACD treading below the zero line, while ADX above 25 at 36.39 signals an existence of a trend, not a direction of one, with neutral oscillators giving either side enough room to maneuver.

AUD/NZD - Australian dollar bulls gave up some of the recently captured territory to the advancing New Zealand dollar counterparts as the antipodean cross remains in the vicinity of the 1.0711, a level marked by the 38.2 Fib of the 1.1162-1.0442 NZD rally and a combination of the 20-day and 50-day SMA's. A further move to the upside will most likely see the pair head higher and aim for offers around 1.0796, a level established by the 50.0 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 1.0880, a level created by the 61.8 Fib of the 1.1162-1.0442 NZD rally. 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 Australian dollar longs with both momentum indicator and MACD above the zero line, with ADX above 25 at 25.41 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.