22 Jul 2014
EUR/USD vulnerable, bounce not ruled out - JPMorgan
FXStreet (Bali) - According to Thomas Anthonj, FX Strategist at JP Morgan Securities, EUR remains vulnerable to further falls, although key-support levels keep the door open for a bounce.
Key Quotes
"The idea of having already completed the first bear market impulse in EUR/USD close to key-support at 1.3477/68 (2014 low/monthly trend) is currently being reviewed."
"As long as it is defended though, we see the start window for a broader 2nd or B-wave rally to 1.3877 (minor 76.4 %) as open."
"For such a rebound to be supported and in order to confirm the wave 1 or wave A low at 1.3503, it however takes breaks above 1.3565/75 (minor 38.2 %/pivot) and above 1.3678 (200 DMA). Close to 1.3877 we'd then see the perfect risk-reward given to establish a strategic EUR short positions."
"Only a decisive break above the latter would re-open extended recovery potential to the big T- junction at 1.4259 (76.4 % on higher scale). A break and weekly close below 1.3468 would on the other hand call for a straight extension towards former lows at 1.3295 (Nov. 13) and at 1.3104 (Sept. 13)."
Key Quotes
"The idea of having already completed the first bear market impulse in EUR/USD close to key-support at 1.3477/68 (2014 low/monthly trend) is currently being reviewed."
"As long as it is defended though, we see the start window for a broader 2nd or B-wave rally to 1.3877 (minor 76.4 %) as open."
"For such a rebound to be supported and in order to confirm the wave 1 or wave A low at 1.3503, it however takes breaks above 1.3565/75 (minor 38.2 %/pivot) and above 1.3678 (200 DMA). Close to 1.3877 we'd then see the perfect risk-reward given to establish a strategic EUR short positions."
"Only a decisive break above the latter would re-open extended recovery potential to the big T- junction at 1.4259 (76.4 % on higher scale). A break and weekly close below 1.3468 would on the other hand call for a straight extension towards former lows at 1.3295 (Nov. 13) and at 1.3104 (Sept. 13)."