AUD/CAD - Canadian dollar longs continued their unrelenting assaults as the price action sided with the Loonie bulls. As Aussie longs continued to head lower while being relentlessly pounded by the Canadian dollar bulls, a further move to the downside will most likely see the cross break the Aussie defenses around .8698, a 61.8 Fib of the .7548-1.0561 AUD rally and head toward .8685, a level marked by the December 23, 2002 daily low. A further move to the downside will most likely see the Canadian dollar longs push their way toward .8590, a level established by the October 15, 2002 daily low. 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 launched a decisive counterattack against the Australian dollar longs as the cross failed to reach yen defenses at 87.62, a level established by the 2005 High. As the price action sides with Japanese yen longs, the next move by the Japanese yen longs will most likely see the cross taking on Aussie bids around 85.57, a level marked by the 50-day SMA. A further move toward the psychologically important 85.00 handle will most likely see the cross test the Australian dollar defenses around 85.11, a level marked by the 23.6 Fib of the 77.00-87.62 AUD rally. 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 failed to push the Australian dollar lower as the cross bottomed and established a new large triangle. As the price action remain confined to a large triangle and Australian dollar longs continue to push their antipodean counterparts 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, with sustained momentum taking on the 1.1065, a 50.0 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 37.84 signaling an existence of a maturing trend, while oversold Stochastic gives the Australian dollar a chance to retaliate.
Sam Shenker is a Technical Currency Analyst for FXCM.
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