12 May 2015
Forex news: EUR/USD extension towards 1.1699/1.1811 likely – JP Morgan
FXStreet (Barcelona) - Thomas Anthonj, Technical Strategist at J.P.Morgan, sees further upside potential for EUR/USD towards 1.1699 and even 1.1811 if the pair is able to break above 1.1389 levels.
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.”
“That said, the short-term chart picture will provide early indications to which side the market is ultimately going to fall via a breakout of the range between 1.1342 (minor 76.4 %) and 1.1112 (minor 38.2 %).”
“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 longterm 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.”
“That said, the short-term chart picture will provide early indications to which side the market is ultimately going to fall via a breakout of the range between 1.1342 (minor 76.4 %) and 1.1112 (minor 38.2 %).”
“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 longterm 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.”