With EUR/USD, GBP/USD, AUD/USD and USD/JPY all selling off on Friday, we are seeing all four pairs move higher this morning. The question is which of these represent an actual bullish move?

Source: Bloomberg

EUR/USD bounces from short-term support

EUR/USD has been selling off heavily in a continuation of the weakness seen in late Friday.

However, we have seen price bounce in a convincing manner from the 100-hour simple moving average, which coincides with an ascending trendline support.

As such, there is a good chance this will have marked the bottom of the selloff, with another leg higher a distinct possibility. The trend of late is clearly geared towards another move towards the upside.

This view would only be negated with an hourly close below $1.0834. Resistance levels of note are at $1.0904, $1.0944 and $1.0984. Below $1.0834, support levels of note are at $1.0808, $1.0796 and $1.0773.

GBP/USD selloff continues

Friday saw GBP/USD continue its sharp decline, with the close below $1.4352 providing the signal for yet another big move lower.

This morning is looking to regain some of those losses, yet any rally is unlikely to last. As such, a move higher will be seen as an opportunity for bears to enter at a better price, rather than anything deeper. Only with a close back above $1.4445 would a medium-term bullish sentiment return.

Resistance levels of note are $1.4343, $1.4347 and $1.4352. Apart from $1.4248, support levels are harder to ascertain given the long-term lows being created. 

USD/JPY rally unlikely to last

USD/JPY is rallying back towards ¥117.32 resistance, which has underpinned price all morning.

The pullback this morning does look more like a bullish continuation pattern than a bearish reversal and an hourly close back above ¥117.32 would provide a short-term bullish signal.

However, unless any rally manages to retake the $118.25 level, a bearish view remains for the medium-term and thus any such rally would likely be sold into. This medium-term bearish view remains until we see price return to ¥116.21, below which would see a new 18-month low created.

Resistance levels above ¥117.32 are at ¥117.43, ¥117.59 and ¥118.06. Support levels of note are ¥116.97, ¥116.51 and ¥116.21.

AUD/USD flag points to possible rally

The AUD/USD selloff seen in the second half of last week provides us with a new seven-year low. However, this has not immediately led to a sharp selloff, with AUD/USD instead rallying this morning.

The flag formation created over the past four hours is a bullish pattern and points towards another leg higher. However, from a wider perspective, this is likely to be sold into and the medium-term bearish view would only be negated should price close back above $0.7000.

Resistance levels of note are $0.6928, $0.6938, $0.6963 and $0.6979. Support is likely at $0.6886, $0.6827.

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