AUD/CAD - Canadian dollar bulls kept the cross below the psychologically important .8500 handle as AUDCAD treaded sideways due to a lack of decisive move from either side. As Loonie longs resume their advance, a further move to the downside will most likely see the Canadian dollar longs test the bids below .8289, a level defended by the March 19, 2002 daily low and with a break to the downside most likely seeing the AUD/CAD head toward the .8190, a level defended by 78.6 Fib .7548-1.0548 AUD rally. A sustained downside momentum will most likely see the Canadian dollar longs aim for the Aussie bids around .8036, a level marked by the January 30, 2002 daily low, 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 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 and once again headed toward the 87.00 figure. A reversal from current levels combined with a confirmed breakdown will most likely see AUD/JPY head lower and target Aussie bids around 85.50, a level defended by the February 27 daily low. A sustained momentum on the part of the Japanese yen longs will most likely see the cross extend its decline below the psychologically important 85.00 handle and target bids around 84.19, a level marked by the 50.0 Fib of the 77.00-91.44 AUD rally. A 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 remained in charge of the price action as AUD/NZD remained confined to an upward sloping channel, with the cross breaking above multi-year range. 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 1.1350, 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. A further collapse of the Kiwi's offers will most likely see the pair gain further momentum and target 1.1567, a level defended by the December 26, 2003 daily high. Indicators are favoring Australian dollar longs, with both positive momentum indicator and MACD treading above the zero line, with ADX above 25 at 42.14 signaling an existence of a maturing trend, not a direction of one, while both overbought oscillators add to a trending outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.