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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - Despite the strong rally late last week, John Normand, FX Analyst at JP Morgan, still has high expectations of having only seen an overshooting countertrend rally.

Key Quotes

"This leaves the downside open for a broader decline towards 1.2681 (C = A) and possibly to the key-T-junction at 1.2436 (int. 76.4 %) whereas the shown green scenario is even inheriting the risk of performing a classical 3rd wave decline towards its projected target at 1.2085."

"To get some down-momentum going it however takes a break below 1.3462/52 (pivots), but confirmation would only be delivered via additional breaks below 1.3347 (daily trend) and 1.3237/01 (minor 76.4 %/200 DMA)."

"A decisive weekly close above 1.3483 (i.e. above 1.3600) would on the other hand open the way for an extension to 1.3854 (monthly Ichimoku-lagging), to 1.4009 (monthly trend) and possibly to 1.4259 (76.4 %)."

"In the short-run we are looking for a range breakout between 1.3711 (last top) and 1.3462/52 (pivots) as such a breakout would provide strong indications whether the bulls have taken over control or whether the countertrend rally top is already in place."
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