Australian Dollar continues to trade sideways
Australian Dollar
Crosses
1. AUD/CAD
2. AUD/JPY
3. AUD/NZD
Chart Of the Moment
AUD/CAD
Canadian dollar longs continued to put pressure
on the Australian dollar bulls as the cross remained confined to a tight trading
range since the beginning of the month. As Aussie longs give up further ground
to the Loonie longs, a move to the downside will most likely see the cross head
toward .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 bids around .8439, a level
marked by the September 4, 2002 daily low, thus seeing the Aussie longs give up
the psychologically important .8500 handle. Indicators signal trending
conditions with ADX above 25 at 28.38, with both momentum indicator and MACD
below the zero line, while neutral oscillators give either side enough room to
maneuver.
AUD/JPY
Japanese yen bulls once again retreated toward
the multi year highs as Australian dollar bulls decided to launce another
counterattack. As the price action once again sides with the Japanese yen longs,
a move to the downside will most likely see the yen bulls taking on Aussie bids
around 85.11, a level marked by the 23.6 Fib of the 77.00-87.62 AUD rally.
A sustained momentum to the downside will most
likely see the Australian dollar longs break below the channel’s lower boundary
and see the yen longs test the bids around 83.66, a level established by the
38.2 Fib of the 77.00-87.62 AUD rally. Indicators are diverging, with momentum
indicator below the zero line and MACD sloping downward toward the zero line,
while neutral oscillators give either side enough room to maneuver.
AUD/NZD
New Zealand dollar bulls continued to keep the
Australian dollar bulls to a narrow trading range as the cross remained confined
to the triangle’s lower boundary. A move to the upside will most likely see the
Australian dollar longs push their antipodean neighbors higher, and with a move
to the upside most likely seeing the Aussie bulls test the Kiwi’s offers around
1.0816, a level marked by the 61.8 Fib of the 1.0567-1.1219 AUD rally.
A sustained momentum to the upside will most
likely see the Aussie longs 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 26.69 signaling an existence of a fading trend, while neutral oscillators
give either side enough room to maneuver.
Sam Shenker
Sam Shenker is a Technical Currency Analyst for Forex
Capital Markets (FXCM). Sam is the author of the Daily and Weekly Technical
Research reports at FXCM. His reports include: Daily Technicals, Weekly Crosses
and the Weekly Chart Pack. Prior to joining FXCM, Sam spent a number of years on
Wall St trading equities, equity derivatives and futures. He also specialized in
research and analysis of high yield bonds, corporate bankruptcies,
restructurings, reorganizations and venture capital.