FXStreet (Bali) - The newly established EUR bear trend risks its first countertrend rally, notes Thomas Anthonj, FX Strategist at JP Morgan.



Key Quotes



"Prospects of having already completed the first bear market impulse in EUR/USD close to key-support between 1.3477 (2014 low) and 1.3454/09 (weekly/monthly trend) are not too bad, which implies that a broader 2nd or B-wave rally to 1.3877 (minor 76.4 %) could be looming as long as 1.3409 is not taken out. For such a rebound to unfold and in order to confirm the wave 1 or wave A low a 1.3503 it however takes a break above 1.3668/76 (200 DMA/pivot)."



"The 1.3877 handle would then offer a perfect risk-reward to establish strategic EUR short positions. 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) though, whereas a break and weekly close below 1.3409 would call for a straight extension towards former lows at 1.3295 (Nov. 13) and at 1.3104 (Sept. 13)."



Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center