AUD/CAD - Canadian dollar longs once again found themselves starring at the psychologically important .9000 handle; however it was the Australian dollar bulls that pushed the Loonie against the figure as the cross signaled a reversal with a morning star pattern, which features an inverse hammer, thus adding move weight to the signal reversal. A further move to the upside by the Australian dollar longs will most likely see the cross head toward .9046, a 78.6 Fib of the .8825-.9584 Australian dollar rally, with a break above most likely see the Aussie longs gather enough momentum and breakthrough the .9100 handle. A further collapse in Loonie defenses will most likely see the CAD retreat above the channels upper boundary and try to defend .9218, a key 61.8 Fib of the .8825-.9584 Australian dollar rally. 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 retreated under continuous onslaught of the Australian dollar longs with the cross heading above psychologically important 85.00 figure. A successful defense of the current price level by the Japanese yen longs will most likely see the cross retreat toward 84.52, a first line of Australian dollar defenses established by the 50-day SMA. A further breakdown will most likely see the yen bulls force their way toward 83.56, an Aussie line of defense established by the 23.6 Fib of the 74.23 -86.40 AUD rally thus opening the cross for a subsequent move below the 83.00 handle. A sustained momentum on the part of the Japanese yen longs will most likely see the cross break the channel's lower boundary, which might see the Aussie longs retreat below the 200-day SMA at 82.51. Indicators are signaling trending conditions with ADX above 25, at 25.88, with momentum indicator above the zero line and MACD sloping upward toward the zero line. Stochastic is extremely oversold which is indicative of the trending conditions.
Key Levels & Technical Indicators
AUD/NZD - New Zealand dollar bulls had their horns broken off by their antipodean counterparts as Aussie longs sprang into action and pushed the cross above the psychologically important 1.1000 handle. A further move to the upside will most likely see the cross head toward 1.1065, a Kiwi line of defense established by the July 18 daily spike high, with a further move to the upside will most likely see the cross head higher and test the New Zealand dollar offers around 1.1141, a 50.0 Fib of the 1.0499-1.1784 NZD rally. A sustained momentum will most likely see the Aussie bulls push their way toward 1.1293, a level marked by the key 61.8 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 fell to 27.2, signaling weakening trend. Stochastic became overbought thus giving Kiwi longs a chance to recover.
Key Levels & Technical Indicators
Chart of the Moment
Sam Shenker is a Technical Currency Analyst for FXCM.
Free Festival of Traders Videos
