The stabilization of EUR/USD is raising the question: is this a temporary correction or a big change?
The team at JPÂ Morgan examines the charts and sets targets in both directions:
Here is their view, courtesy of eFXnews:
A projected C-wave target for the multi-year double-zigzag consolidation pattern in EUR/USD at 1.1091 finally managed to provide a base for the ongoing recovery, notes JP Morgan.
The big question in this context however is, how far this recovery can extend and where would we get indications for a game change?
“That said, we see pivotal resistance at 1.1460 as crucial, which if taken out, would open the way for a broader recovery to 1.1660/79 (minor 38.2 %/pivot). Only above the latter we’d see the EUR bears in trouble as the next 38.2 % Fib.-retracement on higher scale would only cut in at 1.2092,†JPM argues.
“Particularly below 1.1460 though, 1.1091 remains at risk. Once taken out, there would only 1.0765 and 1.0503 (pivots) left on the way towards 1.0072 (76.4 %), if not to 0.9298 (wave 3 projection),†JPM adds.
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