The euro is making its way up on some kind of risk aversion. Where will the common currency go against major counterparts?
The team at JP Morgan examines:
Here is their view, courtesy of eFXnews:
There is a high risk that the market is missing a 5th wave decline in EUR/USD to 1.0462 (2015 low) and most likely to 1.0072 (76.4 % of the 2000-2008 rally) as long as key pivotal resistance at 1.1087 is capping the upside, says JP Morgan.
“The latter would receive fresh support via a break below 1.0753 (hourly Ichimoku-lagging), but to be able to rechallenge 1.0485/62 (wave 3 projection/2015 low)it would take a break below 1.0632 (minor 76.4 %).
A break above 1.1087 though would call for a stronger recovery to at least 1.1216/80 (weekly.-daily trends),†JPM argues.
This also, according to JPM applies for a range of EUR/Crosses like EUR/JPY where it would only take a break and hourly close below 132.75 (minor 38.2 %) in order to call for a deeper setback to at least 130.83 (minor 76.4 %) and most likely to the key-T-junction on big scale at 129.62 (int. 76.4 %).
“EUR/GBP is exactly showing the same setup as keysupport at 0.7157 (minor 38.2 %) needs to be defended to keep the door for a stronger rally into 0.7301 and 0.7373 (daily Ichimoku-lagging/minor 76.4 %) open. An hourly close below 0.7157 would on the other hand risk a deeper setback to at least 0.7046 (minor 76.4 %) and to 0.6932 (2015 low),†JPM argues.
“EUR/CHF remains also at risk of accelerating down south as it keeps on failing to come anywhere close to key-resistance at 1.0965/83 (left shoulder/minor 76.4 %). It would however take a break below pivotal support between 1.0737 and 1.07,†JPM adds.
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