Aussie to be A Big Mover in the Forex Market Today
GBPAUD Long-Term Channel Breakout | Stronger Uptrend Possible
After trading inside a rising channel for quite some time on its daily forex chart, GBPAUD made an upside break after the release of the weaker than expected Australian jobs report. As it turns out, the economy lost 12.2K jobs during January, worse than the estimated 4.7K decline and enough to bring the jobless rate up to a 10-year high of 6.4%.
The pair zoomed past the channel resistance at 1.9500 after the release and appears to be on its way to test the 2.0000 major psychological resistance. If this holds, the pair could still trade back inside the rising channel and make another bounce off support at 1.8500.
Take note that this pound pair is particularly volatile, as price swings can go from around 300-500 pips per day. Wide stops are recommended, especially for taking longer-term setups on this pair.
Another event risk for this pair today is the BOE Inflation Report hearings, which could determine whether the central bank is still upbeat about UK economic prospects or not. Dovish remarks could put GBPAUD back inside its long-term range while hawkish comments could lead to further gains past 2.0000. Stochastic is almost in the overbought territory but hasn’t crossed down.
AUDCAD Range Breakdown | Next Support at .9600
Australia’s weaker than expected jobs report was enough to trigger a sharp downside break from the short-term range of AUDCAD. Recall that this pair previously formed a head and shoulders pattern on its longer-term time frames before consolidating below the formation’s neckline around .9800.
From there, price bounced back and forth inside a 100-pip range from .9700 to .9800 before picking a direction in today’s Asian trading session. This suggests that downside momentum has picked up and may be enough to bring price down to the recent lows at .9600.
Speculations of another RBA rate cut in their March or April policy statement could continue to keep the Australian currency weak, which might lead to the formation of new lows near .9400. Bear in mind though that the BOC has also just cut interest rates, citing the weak inflation outlook as their main reason.
Much of the Loonie’s movement could depend on whether the recent oil price rebound is sustained. If so, AUDCAD could be in for more weakness as traders return to the Canadian dollar. Otherwise, the pair could be in for another test of .9800 or perhaps parity if the outlook for Canada continues to deteriorate.
Bearish Flag Pattern on WYNN Shares | Potential Downtrend Continuation
WYNN shares have been moving sideways recently, after coming off a sharp selloff as seen on its daily time frame. Price is also finding resistance at the 50 simple moving average for now and this has held as a dynamic inflection point in the past.
A downside break from the current consolidation could mean further losses for the stock, which could head to the next support around $140/share. An upside break, on the other hand, might mean a test of the next resistance at the 200 simple moving average near $180/share.
MACD is hinting at a potential downtrend continuation, as the indicator is almost in the overbought region already. RSI is still treading higher past middle ground and may be signaling a higher pullback before the selloff resumes.
Take note also that the 50 simple moving average is still moving below the longer-term 200 SMA, which means that the downtrend is intact and that the path of least resistance is to the downside. However, the lack of major market catalysts for this week could keep price in range between support at $140/share and resistance at $155/share.