- AUD/CAD
- AUD/JPY
- AUD/NZD
AUD/CAD - Canadian dollar longs were in full retreat after the cross found substantial bids around the .8900 figure and Aussie bulls launched a full counter attack against the Loonie positions. As the price action escalates, punctuated by two sharp price spikes that were unable to pierce above the Canadian dollar defenses at .9219, comprised of the 61.8 Fib of the .8825-.9584 Australian dollar rally. As Loonie bulls reassert their dominance and push the cross toward the .9100 handle, a break below will most likely see the Canadian dollar longs gather enough momentum and breakthrough the .9046, a 78.6 Fib of the .8825-.9584 Australian dollar rally. A break in Aussie defenses will most likely see the CAD retake the psychologically important .9000 figure and aim for .8885, next line of Aussie defenses comprised by the August 31 daily low. Indicators remain in favor of CAD longs with both MACD and momentum indicator below the zero line, while neutral oscillators give either side enough room to maneuver.
Key Levels & Technical Indicators
AUD/JPY - Japanese yen bulls once again remained on the wrong side of the trade after failing to push the cross below the channel's lower boundary and seeing the Australian dollar bull's spring into action and push the AUD/JPY above the 84.00 figure. As the price action remains confined to an upward sloping channel, a move to the upside will most likely encounter Japanese yen defenses around the psychologically important 85.00 level, which is defended by the June 20 daily spike high. A subsequent reversal will most likely see the cross head toward 83.56, an Aussie line of defense established by the 23.6 Fib of the 74.23 -86.40 AUD rally thus establishing a Head and Shoulder reversal pattern. A subsequent move below the 83.00 handle will most likely see the cross break the channel's lower boundary and the neck line, which might see the Aussie longs retreat below the 200-day SMA at 82.22. Indicators are mixed with momentum indicator above the zero line, while MACD sloping upward below the zero line, with oscillators beginning to approach the overbought line.
Key Levels & Technical Indicators
AUD/NZD - New Zealand dollar bulls remained opposed to the Australian dollar longs with neither side managing to take an upper hand as cross continued to consolidate within a 100 pip range. As Aussie longs muster their forces and push the AUD/NZD higher, next move to the upside will most likely to push the Kiwi bulls above the 1.0900 figure and break the defensive positions at 1.0936, comprised of August 16 daily high. A sustained invasion by the Australian dollar longs will most likely see the New Zealand dollar bulls give up more territory as the cross heads above the psychologically important 1.1000 handle and the key 38.2 Fib of the 1.0499-1.1784 NZD rally. Indicators remain in favor of the New Zealand dollar bulls, with MACD below the zero line diverging from the momentum indicator above the zero line, while ADX above 25 at 30.14 signaling trending market conditions.
Key Levels & Technical Indicators
Sam Shenker is a Technical Currency Analyst for FXCM.