AUD/CAD - Canadian dollar bulls continued to push their Australian dollar counterparts lower as price action stalled around .8650, a level established by the combination of the 20-day and 50-day SMA's. As AUD/CAD breaks lower, a move by the Loonie longs will most likely see the AUDCAD head below the psychologically important .8500 handle and test the Australian dollar bids around .8474 a level marked by the December 28 daily low. A further move on the part of the Canadian dollar longs will most likely see the cross head toward the .8381, a level defended by the August 22, 2002 daily low. A further downside momentum will most likely see the Loonie bulls push the cross lower and aim for the Aussie bids around .9163, a level created by the 50.0 Fib of the .9854-.8474 CAD rally, thus seeing AUD/CAD break below .8200 figure and test the bids around .8174, a level established by the February 24, 2002 daily low. Indicators are favoring Canadian dollar longs, with both negaive momentum indicator and MACD treading below the zero line, while overbought Stochastic gives Australian dollar longs a chance to retaliate.

AUD/JPY - Japanese yen traders retreated further as the cross once again headed above 87.97, a level established by the 23.6 Fib of the 77.00-91.44 AUD rally. As Aussie traders continue their advance, a move above 89.95, a level marked by December 8 daily high will most likely see the cross head higher and test the Japanese Yen offers above the psychologically important 90.00 handle and test the yen offers around 90.83m December 13 daily high. A further move to the upside will most likely see the cross head toward the recent multi year highs at 91.97, a level defended by the 2005 High. Indicators are favoring the Australian dollar longs, with both positive momentum indicator and MACD treading above the zero line, with overbought Stochastic giving Australian dollar longs a chance to retaliate.

AUD/NZD - Australian dollar bulls continuously failed to push the cross higher as AUD/NZD stalled around the psychologically important 1.1000 handle, a level marked by the 78.6 Fib of the 1.1162-1.0442 NZD rally. A failure to break above will most likely see the New Zealand dollar longs push the cross lower and with a move below 1.0900 figure most likely targeting, 1.0878, a level created by the combination of 61.8 Fib of the 1.1162-1.0442 NZD rally and 20-day SMA. A further move on the part of the Kiwi longs will most likely see the cross aim for the Aussie bids around 1.0792, a level established by the 50.0 Fib of the .1162-1.0442 NZD rally. A further break to the downside will most likely see the AUD/NZD head lower and test the Australian dollar defenses around 1.0708, a level marked by the 38.2 Fib of the .1162-1.0442 NZD rally. Indicators are favoring Australian dollar longs, with both positive momentum indicator and MACD treading above the zero line, while ADX above 25 at 31.54 signals an existence of a trend, not a direction of one, with neutral oscillators giving either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.