AUD/CAD â�,�“ The AUDCAD continues to rally and is approaching resistance from a potential 2 year and 9 month resisting trendline.  Trend following indicators remain strong with ADX above 40.  Historically, trends in this pair have tended to give way to more sideways action as when ADX has been between 40 and 50.  This combined with bearish divergence among oscillators on the daily (and overbought daily RSI) and the proximity of the major resisting line warrant tight risk parameters for trend followers.  A break through the trendline exposes the 10/6 high at .8997.  Initial support is former resistance at the 11/22 high of .8861.

AUD/JPY â�,�“ The AUDJPY continues to range between 89.75 and 91.26.  The 12/6/2005 high at 91.32 reinforces resistance at the top of the range.  Still, upside risk remains with MACD slope positive and daily oscillators increasing.  Only a break below 89.75 would suggest greater bearish potential.  89.75 support is reinforced by a trendline drawn off of the 6/5 and 10/5 lows.

AUD/NZD â�,�“ A short term continues to form from the 10/26 high at 1.1659.  We mentioned last week that â�,��"probability favors a push to the upper end of the triangle followed by a decline back into the triangle to complete 5 wavesâ�,�.  This appears to have happened with the decline today.  Since the preceding trend is up from 1.1201, this wedge most likely eventually gives way to a more pronounced rally.  Price needs to stay above 1.1450 in order to keep the triangle intact.

Jamie Saettele is a Technical Currency Analyst for FXCM.