Sell-offs traditionally across the global markets are far more violent then the buy-ups behind them. Today that mantra reigned king again in the FX markets as the majors sold off strongly against the USD while the JPY pairs also suffered the same fate.
Taking a look at the Fibonacci's behind the most recent moves, we can see most of the gains the pairs made at the end of last week have been given back to the tune of 2/3's or 3/4's of their respective climbs. Sampling a few pairs from the frey, the EURUSD has held up its own the best, or a better way of describing it would be has lost the least, but lost nonetheless.
The chart below shows the EURUSD on a 1hr chart where the 61.8% fib of the most recent three cent gain has come under attack for the last few hours. So far, the garrison has held at the 1.2750 region where the last major intraday fib is parked. But notice how long it took to get from the highs to the lows - a whopping 4hours which took over 30+ to build. Thus the natural propensity of traders is still to sell the EURUSD at this juncture.
This natural tendency is further amplified by the weaker relative, the GBPUSD. This pair made a double top at last weeks high instead of making newer highs today, suggesting even further weakness. This has definitely been the weaker of the two pairs and as shown by the chart below, is treating the 61.8% fib as resistance and not support. This suggests a likely full reversal towards the mid 1.55handle and a breach quickly testing the big figure just 50 pips below.
Lastly, the JPY pairs exhibited this similar behavior as they were hit the hardest today and the AUDJPY being no exception. The 1hr chart below shows how the pair also lost in a handful of hours at the end of the London session what had taken over a day to build. The impulsiveness of the move demonstrates how easy it is for the market to be selling these pairs instead of buying them, thus our bias is still up for the USD and JPY as a whole.