13 May 2015
EUR/USD could hit 1.1811… or drop to 0.9298 – JP Morgan
FXStreet (Edinburgh) - Analyst Thomas Anthonj at JP Morgan assessed the likeness of EUR/USD to reach 1.1811 or drop below the parity level.
Key Quotes
“We still see the possibility of extending the broader recovery to 1.1699 and 1.1811 (int. 38.2 % on higher scales), which however requires a decisive break above 1.1389 (minor 38.2 %) in order to eliminate the looming risk of resuming the long-term downtrend straight away”.
“Breaks above 1.1342 and above the last top at 1.1392 would re-open the door for a straight extension up to 1.1534 (pivot) and most likely to the 38.2 % retracements on higher scale at 1.1699 and at 1.1811, whereas a break below 1.1112 would immediately expose key-pivotal support at 1.1066/53”.
“Only a break below the latter would provide a strong warning signal in favor of a broader setback to 1.0727 (minor 76.4 %), if not the resumption of the long term downtrend towards 1.0072 (76.4 % of he 2000-2008 rally) and possibly to projected wave 3 Fib.-targets at 0.9652 and at 0.9298”.
Key Quotes
“We still see the possibility of extending the broader recovery to 1.1699 and 1.1811 (int. 38.2 % on higher scales), which however requires a decisive break above 1.1389 (minor 38.2 %) in order to eliminate the looming risk of resuming the long-term downtrend straight away”.
“Breaks above 1.1342 and above the last top at 1.1392 would re-open the door for a straight extension up to 1.1534 (pivot) and most likely to the 38.2 % retracements on higher scale at 1.1699 and at 1.1811, whereas a break below 1.1112 would immediately expose key-pivotal support at 1.1066/53”.
“Only a break below the latter would provide a strong warning signal in favor of a broader setback to 1.0727 (minor 76.4 %), if not the resumption of the long term downtrend towards 1.0072 (76.4 % of he 2000-2008 rally) and possibly to projected wave 3 Fib.-targets at 0.9652 and at 0.9298”.