AUD/CAD - Canadian dollar bulls pushed the cross further below the psychologically important .8500 handle as price action remained to favor Loonie longs. A further move to the downside will most likely see the Canadian dollar longs once again test the bids around .8381 a level marked by the August 22, 2002 daily low and with a break to the downside most likely seeing the AUD/CAD head toward the .8289, a level defended by the March 19, 2002 daily low. A further downside momentum will most likely see the Canadian dollar bulls extend their rally and aim for the Aussie bids around .8190, a level established by the 78.6 Fib .7548-1.0548 AUD rally, with a confirmed breakdown will most likely see the Australian dollar bulls give up the psychologically important .8000 handle, a level not seen since late 2001. Indicators are favoring Canadian dollar longs, with both negative momentum indicator and MACD treading below the zero line, while neutral oscillators giving either side a room to maneuver.

AUD/JPY - Japanese yen longs managed to break below the triangle's lower boundary but failed to push the cross below 85.89, a level defended by the 38.2 Fib of the 77.00-91.44 AUD rally and is further reinforced by the 200-day SMA. A confirmed breakdown will most likely see AUD/JPY head lower and target Aussie bids around the psychologically important 85.00 handle, a defended by the December 28 daily low. A sustained momentum on the part of the Japanese yen longs will most likely see the cross extend its decline toward 84.19, a level marked by the 50.0 Fib of the 77.00-91.44 AUD rally and with further move to the downside most likely aiming for 82.48, a level marked by the 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 neutral oscillators giving either side a room to maneuver.

AUD/NZD - Australian dollar bulls continued push the cross higher as AUD/NZD remained confined to an upward sloping channel, which gives the overall price action an upward bias. As Aussie longs continue to push the cross higher, a further move on the part of the Australian longs will most likely see AUD/NZD aim for the offers around 1.1270, a level established by the 50.0 Fib of the 1.1782-1.0442 NZD rally. A further move to the upside will most likely see the cross head higher and test the Kiwi's defenses around 1.1350, a level marked by the May 10, 2004 daily low. A sustained momentum on the part of the Australian dollar longs will most likely see the AUD/NZD head higher and take on New Zealand dollar offers around the psychologically important 1.1500 handle, a level defended by the key 78.6 Fib of the 1.1782-1.0442 NZD rally. Indicators are favoring Australian dollar longs, with both positive momentum indicator and MACD treading above the zero line, with ADX above 25 at 36.56 signaling an existence of a trend, not a direction of one, while overbought Stochastic adds to a trending outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.