AUD/CAD - Canadian dollar traders continued to keep the cross confined to a narrow trading range with the price action revolving around .8696, a level established by the 61.8 Fib of the .7548-1.0561 AUD rally. As market remains in a trading range, a move by the Australian dollar longs will most likely see the cross head above the .8700 handle and test the Loonie offers around .8776, a level marked by the November 21 daily high. However given the trading range conditions, a break below the .8600 figure will most likely see the Loonie bulls test the bids around .8590, a level established by the October 15, 2002 daily low. A further collapse of the Australian dollar defenses will most likely see the cross test the Australian dollar bids around the psychologically important .8500 handle. Indicators are diverging, with positive momentum indicator above the zero line and negative MACD sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.

AUD/JPY - Japanese yen traders continued to dominate the price action as they pushed the cross below the psychologically important 90.00 handle. A break below 89.03, a level marked by the20-day SMA will most likely see the cross head lower and test the bids around 88.03, a level established by the 23.6 Fib of the 77.00-91.44 AUD rally. A further move to the downside will most likely see the cross head lower and test the Aussie bids around 87.23, a level created by the November 23 daily low. Indicators signal trending market conditions with ADX above 25 at 36.32 signaling an existence of a trend not a direction of one, with both momentum indicator and MACD above the zero line, while neutral oscillators give the yen longs a chance to retrace part of the Aussie rally.

AUD/NZD - New Zealand dollar bulls failed to maintain the downward momentum and saw the cross sharply rallied above the downward sloping channel's upper boundary. As Aussie traders reestablish their dominance and push the pair above the 1.0717, a level established by the 38.2 Fib of the 1.1162-1.0442 NZD rally, the next move to he upside will most likely see the antipodean cross head higher and test the Kiwi's offers around 1.0796, a level marked by the 50.0 Fib of the 1.1162-1.0442 NZD 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 34.76 signaling an existence of a fading trend, while oversold Stochastic adds to the trending outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.