28 Apr 2015
EUR/USD above 1.1053/98 could open the door to 1.1267/79 – JP Morgan
FXStreet (Edinburgh) - In the opinion of analysts at JP Morgan, the pair needs to clear the resistance band at 1.1053/98 in order to gain further upside momentum.
Key Quotes
“Having erratically traded sideway in EUR/USD for six weeks and since we marked the 1.0462 (last low) in March, we have to assume that the broader downtrend towards 1.0400 (H & S projection) and to 1.0072 (76.4 % of the 2000-2008 rally) is still intact as no decisive reversal signal has been delivered yet”.
“Only a break above 1.1053/98 (key pivots) would seriously start weakening the trend in favor of a broader recovery to 1.1267/79 (int. 38.2 %) if not to 1.1699 and to 1.1811 (int. 38.2 % on higher scales)”.
“Particularly below 1.1053/98, a straight resumption of the downtrend towards 1.0072 and possibly to projected wave 3 Fib.-targets at 0.9652 and at 0.9298 remains highly likely, which would be confirmed via breaks below 1.0660 and below 1.0521 (last lows)”.
Key Quotes
“Having erratically traded sideway in EUR/USD for six weeks and since we marked the 1.0462 (last low) in March, we have to assume that the broader downtrend towards 1.0400 (H & S projection) and to 1.0072 (76.4 % of the 2000-2008 rally) is still intact as no decisive reversal signal has been delivered yet”.
“Only a break above 1.1053/98 (key pivots) would seriously start weakening the trend in favor of a broader recovery to 1.1267/79 (int. 38.2 %) if not to 1.1699 and to 1.1811 (int. 38.2 % on higher scales)”.
“Particularly below 1.1053/98, a straight resumption of the downtrend towards 1.0072 and possibly to projected wave 3 Fib.-targets at 0.9652 and at 0.9298 remains highly likely, which would be confirmed via breaks below 1.0660 and below 1.0521 (last lows)”.