Major moves happening in the FX markets see AUD/USD, EUR/USD, GBP/USD and USD/JPY trending lower. This highlights the fact the yen represents one of the only outperformers compared to the dollar.

Source: Bloomberg

EUR/USD selling off once more
EUR/USD has been selling off heavily so far this week and this seems like a theme which is likely to continue given yesterday’s break back below the crucial $1.0808 support level. That now turns into resistance should we see any substantial upside.

The overnight rally fell short of the initial resistance at $1.0781, which provides us with a renewed bearish bias. Despite a strong current candle, we clearly remain within a downtrend over the past week and thus there seems a good chance that we will head back below $1.0710 rather than up through $1.0781.

Should we see price fail to break through $1.0710 and instead post an hourly close above $1.0781, then this would provide more of a bullish tone.

Key resistance levels are $1.0773, $1.0781 and $1.0808, with support levels at $1.0710, $1.0689 and $1.0674.

GBP/USD downtrend remains
GBP/USD continues to sell off today, with price breaking to a new eight-month low this morning. We have seen a very consistent downtrend in play here and this looks likely to remain the case for the time being.

However, it is important to note that each time we have broken to a new intraday low, it fails to last more than two candles. With that in mind, we remain bearish yet see pullbacks as better entries than breakouts.

Notable resistance levels are at $1.4638, $1.4663 and $1.4683, with key support levels are trendline support at $1.4579 and the April 2015 low of $1.4566.

USD/JPY downside expected
The bearish view remains for USD/JPY, which despite dollar strength, remains in a downtrend. An overnight rally appears to have found resistance upon yesterday’s Y118.79 low and thus we expect to see further downside, with a break back through Y118.35.

Notable resistance levels are at Y118.60, Y118.79 and Y119.22, with support at Y118.35 and Y118.06.

AUD/USD sells off once more
AUD/USD has been selling off heavily in the past week, with price breaking through key support at $0.7097 this morning. This seems a clear downtrend and the fact we have broken through such a notable level with ease shows there is probably more left in the tank.

Key resistance levels are at $0.7097 and $0.7170, with support at $0.7069, $0.7044 and $0.7016. 

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