AUD/CAD - Canadian dollar longs continued to tread water as the price action remained confined to a tight trading range. As Aussie longs managed to push the cross above the .8800 handle, a move to the upside will most likely see the Australian dollar longs make their way toward .8971, a 50-day SMA, which currently defends the psychologically important .9000 handle. A further move to the upside will most likely see the cross head higher and take on the Loonie defenses around .9031, a level marked by the 23.6 Fib of the .9854-.8777 CAD rally, with sustained momentum seeing the Australian dollar make their way toward the .9188, a 38.2 Fib of the .9854-.8777 CAD rally. Indicators continue to support Canadian dollar longs with both momentum indicator and MACD below the zero line, while neutral oscillators give either side enough room to maneuver.
AUD/JPY - Japanese yen retreated under onslaught by the Australian dollar longs as the cross failed to break below the Aussie defenses established by the 20-day SMA at 86.45. As the price action continues to tread sideways, the next move by the Japanese yen longs will most likely see the cross taking on Aussie bids around 85.19, a level marked by the 50-day SMA. A further move below the psychologically important 85.00 handle will most likely see the cross test the Australian dollar defenses around 83.93, a September 5 daily low, which is further reinforced by the channel's lower boundary. A collapse of the channel's lower boundary will most likely see the Japanese yen bulls make their way toward the 82.58, an August 30 daily low, thus breaking below the 200-day SMA. Indicators continue to support Aussie longs with both momentum indicator and MACD above the zero line, while neutral oscillators give either side enough room to maneuver.
AUD/NZD - New Zealand dollar bulls continued to push the Australian dollar lower as the cross tumbled like a rock. As the price action remain confined to a large channel, a further move to the downside will most likely see the Kiwi longs test the channels' lower boundary which is further reinforced by the 78.6 Fib of the 1.0567-1.1219 AUD rally. In case the Australian dollar longs manage to launch a counter attack and push the AUD/NZD higher, a move to the upside will most likely see the Aussie longs take on the Kiwi's defense around 1.0816, a level marked by the 61.8 Fib of the 1.0567-1.1219 AUD rally. Indicators remain in favor of the New Zealand dollar longs with both momentum indicator and MACD below the zero line, with ADX above 25 at 27.98 signaling an existence of a trend, while extremely oversold Stochastic gives the Australian dollar enough room to maneuver.
Chart of the Moment
Sam Shenker is a Technical Currency Analyst for FXCM.
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