AUD/CAD
Commentary – If you have been following the crosses, then you know that we are looking for a significant bottom and strong rally to much higher levels. The weekly chart analysis touches on this and can be found here AUD/CAD. We wrote last week that “the rally from .8271-.8751 can be counted as 5 waves up and a 3 wave correction has followed, indicating that the larger degree trend is bullish. The only question is whether or not the drop from .8752-.8588 is a complete correction or just the first leg of a more complex correction.” It is clear now that the drop was the first leg of a more complex correction. Look for a drop below .8572 and for a test of the 50%-61.8% of .8271-.8751 at .8511/.8454 and an opportunity to get bullish if not already so.

Strategy – Longer term bullish against .8119, target much higher (above .9514)

AUD/JPY
Commentary – The AUD/JPY remains in the correction that began at 85.98 on 8/17. As mentioned last week, “everything that has occurred since the low (85.98) is large wave B.” Wave a of B ended at 97.01. Wave b of B is underway now and will either be a flat or a triangle. Both point lower near-term, but a triangle will be choppy and extremely difficult to trade. A flat would come under 91.73 for a test of the 61.8% of 85.98-97.01 at 90.19 before wave c of B turns up.

Strategy – Flat

AUD/NZD
Commentary – We wrote last week that “price will continue higher and register a new high in a 5th wave (above 1.1762). This would make 5 waves up from 1.0906 and give way to a larger correction. The correction will offer an opportunity to get aggressively bullish for wave 3 higher.” The pair broke to new highs and a correction lower should begin soon. We will look for an opportunity to get bullish near the former 4th wave in the 1.1400 area.

Strategy – Flat

Jamie Saettele is a Technical Currency Analyst for FXCM.