EUR/USD and GBP/USD are experiencing weakness. However, upon recoveries, what are the preferred tactics?
The team at JP Morgan marks key levels for both euro/dollar and cable:
Here is their view, courtesy of eFXnews:
The recovery attempts of the EUR are still weak and lack follow-up once a minor resistance has been taken out, which is still painting a rather weak picture, notes JP Morgan.
That said, JPM warns that above 1.2441 (minor 76.4 %), the risk of running into a stronger bounce persists, but it would take a break above 1.2612/14 (hourly trend/pivot) for the latter to jump scales.
Such a break, according to JPM, would deliver strong evidence that we are at least dealing with a 4th wave rebound on higher scale which would most likely challenge the main T-zone at 1.2871/88 (int. 38.2 %/pivot.
“A failure to clear 1.2612/14 and/or a break below 1.2441 would on the other hand get 1.2318/1.2260 (Fib’s) and 1.2223 (w. trend) back in focus,†JPM projects.
Same for Cable, where JPM notes that it has reached weekly Ichimoku-support for the lagging line at 1.5596 last Friday suggestion that the market started stabilizing.
This according to JPM, opened the door for a temporary bounce to 1.5728 (minor 38.2 %) and most likely to 1.5820/39 and 1.5949 (int. 38.2 % on higher scales) where the upside looks capped
“Provided these key-resistance barriers are not taken out, we’d see the broader downtrend as unharmed and would expect the resumption of the broader downtrend for a test of 1.5374 (int. 76.4 %) shortly,â€JPM projects.
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