AUD/CAD - Canadian dollar bulls retreated above the psychologically important .8500 handle as price action joined sides with the Australian dollar longs. A further move above will most likely see the Australian dollar longs test the offers around .8616 a level marked by the 50-day SMA and  with a further move to the upside most likely seeing the cross head toward the .8794, a level defended by the 23.6 Fib of the .9854-.8474 CAD rally. A further upside momentum will most likely see the Aussie longs push the cross higher and aim for the Loonie offers around .8927, a level created by the October 24 daily high, thus seeing AUD/CAD set it sights on the psychologically important .9000 handle, a level defended by the 38.2 Fib of the .9854-.8474 CAD rally. 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 further their advance.

AUD/JPY - Japanese yen longs failed to further their advance as cross stalled above the 87.00 figure, a level defended by the 50-day SMA's. As Australian dollar 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 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 cross break above the yen offers around 90.83 December 13 daily high and with sustained momentum to the upside most likely seeing the AUD/JPY 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, while neutral oscillators giving either side a room to maneuver.

AUD/NZD - New Zealand dollar bulls failed push the cross lower as AUD/NZD failed to gain momentum below 1.0900 figure, a level defended by the combination of 61.8 Fib of the 1.1162-1.0442 NZD rally and 20-day SMA. In case New Zealand dollar longs manage to push the pair lower, a further move on the part of the Kiwi longs will most likely see the cross aim for the Aussie bids around 1.0830, a level established by the combination of the 50.0 Fib of the .1162-1.0442 NZD rally, a 50-day and 200-day SMA's. A further break to the downside will most likely see the AUD/NZD head lower and test the Australian dollar defenses around 1.0738, 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, with neutral oscillators giving either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.