Overnight, traders received data from the Australian jobs market. The unemployment rate rose, which is bad, but the unemployment change was higher than expected. This information could have been perceived as positive. Despite that, AUD dropped, why? The reason for that was that this data was only partially good as most of those gains came from part-time jobs. Those numbers increased the chances of a further rate cut in Australia, which is negatively affecting the national currency.
First, we will show you the AUDUSD pair, where we have a bearish flag. The pair broke its lower line and continued downwards. The latest development here is the price successfully testing 0.694 as a resistance. That provides confirmation of negative sentiment.
Negative sentiment can be also seen on AUDJPY, where instead of the double bottom formation and an upswing, the price created a pennant, which resulted in a downswing. The sell signal is ON.
Lastly, a few words about the NZDCAD pair, which has been on our radar for a long time. After a heavy drop, the time came for a correction and the price created a flag formation (red lines). This kind of pattern, as you know, should bring us a further decline, but a sell signal will only be created with a breakout of the lower line.