AUD/CAD ââ,¬â€œ The AUDCAD remains in the bullish 3rd wave that began on 9/28 at .8288.  3rd waves often travel roughly 138.2% to 161.8% of the first wave.  In this case, the first wave was from .8119-.8684, thus the 138.2% and 161.8% targets are at .9063 and .9195.  Current price is just above the first target and the break above the nearly 3 year resisting line on 11/30 favors additional strength.  A bullish bias is warranted above the trendline drawn off of the 10/9 and 11/10 lows.   Trendline support is reinforced by the 12/5 and 12/11 lows at .8941/77.  Bulls should be aware of daily RSI above 70 and its reversal implications.

AUD/JPY ââ,¬â€œ The Aussie continues its assault on the Yen as price has broken above the 12/6/2005 high at 91.32.  A well defined bullish channel can be drawn from the September 2001 lows.  A midpoint channel line provides an additional point of reference.  This line has historically held as both support and resistance (see chart below).  Potential resistance from the midpoint channel line is at 93.71 today and increases about 4 pips per day.  A shorter term channel is also evident.  The resistance line from the short term channel intersects the long term midpoint channel line at the end of December just above 94.00 ââ,¬â€œ this could be where the AUDJPY ultimately runs into offers.

AUD/NZD ââ,¬â€œ AUDNZD may be entering a 3rd wave rally ââ,¬â€œ if this is the case ââ,¬â€œ the pair would exceed 1.1659 and challenge 1.1863, which is where wave 3 (beginning at 1.1407) would equal wave 1 (1.1201-1.1659).  A break above 1.1659 confirms that the pair is in a 3rd wave rally (which are often the strongest rallies in a 5 wave sequence).  1.1201 must hold for the bullish scenario to play out.  Additional support is at todayââ,¬â"¢s low at 1.1344.  CCI is turning up from below 100 on the daily as well ââ,¬â€œ which has historically indicated a bottoming out in the pair.

Jamie Saettele is a Technical Currency Analyst for FXCM.