26 Sep 2013
EUR/USD, weekly close above 1.36 a tech game changer - JPMorgan
FXstreet.com (Barcelona) - JP Morgan FX Strategists note that a decisive weekly close in EUR/USD above 1.3483/1.3521, ideally 1.36, would constitute a technical game changer event in favour of the bulls.
Key Quotes
"The attacks on the main T-junction at 1.3483/1.3521 (int. 76.4 %/pivot) might finally succeed but for the latter to be confirmed it takes a decisive weekly close above (i.e. above 1.3600)."
"A failure to provide such a confirmed break would still leave the downside open for a broader decline towards 1.2579/1.2436 (C = A/int. 76.4 %) even inheriting the risk of performing a classical 3rd wave decline towards its projected target at 1.1983."
"To get some down-momentum going it however takes breaks below 1.3459/52 (minor 38.2 %/pivot), but confirmation would only be delivered via additional breaks below 1.3208 (minor 76.4 %) and 1.3177/63 (daily trend/200 DMA)."
"A weekly close above 1.3600 would on the other hand open the way for an extension to 1.3923 (monthly Ichimoku-lagging), to 1.4041 (monthly trend) and possibly to 1.4259 (76.4 %)."
"In the short-run we are looking for a range breakout between 1.3600 and 1.3177/63 (minor 76.4 %/200 DMA) as such a breakout would provide early indications whether the bulls have taken over control or whether the countertrend rally top is already in place."s."
Key Quotes
"The attacks on the main T-junction at 1.3483/1.3521 (int. 76.4 %/pivot) might finally succeed but for the latter to be confirmed it takes a decisive weekly close above (i.e. above 1.3600)."
"A failure to provide such a confirmed break would still leave the downside open for a broader decline towards 1.2579/1.2436 (C = A/int. 76.4 %) even inheriting the risk of performing a classical 3rd wave decline towards its projected target at 1.1983."
"To get some down-momentum going it however takes breaks below 1.3459/52 (minor 38.2 %/pivot), but confirmation would only be delivered via additional breaks below 1.3208 (minor 76.4 %) and 1.3177/63 (daily trend/200 DMA)."
"A weekly close above 1.3600 would on the other hand open the way for an extension to 1.3923 (monthly Ichimoku-lagging), to 1.4041 (monthly trend) and possibly to 1.4259 (76.4 %)."
"In the short-run we are looking for a range breakout between 1.3600 and 1.3177/63 (minor 76.4 %/200 DMA) as such a breakout would provide early indications whether the bulls have taken over control or whether the countertrend rally top is already in place."s."