AUD/CAD - Canadian dollar bulls continued the price action as cross continued to edge lower toward the psychologically important .8500 handle. A break below will most likely see the Loonie bulls test the Australian dollar bids around .8474 a level marked by the December 28 daily low with a further move to the downside most likely seeing 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 negative momentum indicator and MACD treading below the zero line, while oversold Stochastic gives Australian dollar longs a chance to retaliate.

AUD/JPY - Japanese yen traders halted their unrelenting assault as cross stalled above the 87.00 figure, a level defended by the combination of the 20-day and 50-day SMA's. As Aussie longs resume their advance, a move above 87.98, a level established by the 23.6 Fib of the 77.00-91.44 AUD rally, will most likely see the cross head higher and test the Japanese Yen below above the psychologically important 90.00 handle at 89.40, a level marked by the February 2 daily high. A further move to the upside will most likely see AUD/JPY break above the yen offers around 90.83 December 13 daily high and with sustained momentum to the upside most likely seeing 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 Japanese yen longs a chance to retaliate.

AUD/NZD - New Zealand dollar bulls managed push the cross lower as AUD/NZD failed to advance above the psychologically important 1.1000 handle, a level marked by the 78.6 Fib of the 1.1162-1.0442 NZD rally. A sustained break below 1.0900 figure most likely will most likely see the New Zealand dollar longs 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 mixed, with negative momentum indicator diverging from positive MACD above the zero line, while ADX above 25 at 27.53 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.