By DailyFX - AUD/CAD has traded in a range the past week primarily between .8512 and .8400. The pair looks bullish at the moment however...

... for two reasons.


One, there is an inverse head and shoulders reversal on the daily and
the pair has broken the neckline today. Two, the pair has formed an
ascending triangle on the hourly / dealer chart. Last week, we
mentioned that "The hourly shows that the pair is trading in an
ascending triangle with the upper flat line at .8500 and the ascending
supporting line at around .8415." this week's low has been .8407 and we
are currently trading near the 50% fibo of .8824-.8207 at .8515, a daily
close above would bolster the bullish bias. Daily oscillators are
bullish as well with rising RSI, MACD > 0 and DMI + crossing DMI -.

AUD/JPY * AUD/JPY also ranged until today, and the pair has traded up
through 87.00 and to a downward sloping resisting trendline that dates
to December 2005. Zooming back and taking a forming a big picture look,
it looks like the pair is currently trading within a 6 month head and
inverse head and shoulders pattern. A break of the mentioned resisting
trendline (also the neckline) would complete the pattern and offer a
bullish bias. Until that happens, there is of course the possibility of
choppy trading down towards the 4/25 low at 85.00

AUD/NZD * "Since correcting from the 1.2015 high made on
4/11*oscillators are bullish as evidenced by a positive MACD cross
near 0 and an increasing RSI" was the view last week and price action
has panned out as planned with the pair back above 1.1900 and even
piercing the 1.2000 figure in Tokyo trading last night. A break above
the 1.2015 high made on 4/11 targets the 127% fibo of 1.1788-1.0425 at
1.2150. Having recently traded down from viciously overbought levels,
daily oscillators are again rising but the break below overbought levels
warrants caution. The 20 SMA at 1.1870 is initial support with
additional weakness exposing the 4/26 low at 1.1814 in the event of a
rejection at the previous high of 1.2015.



By DailyFX