Flash: EUR/USD, needs a range breakout for fresh directions - JPMorgan

FXstreet.com (Barcelona) - Recent price action in EUR/USD has been indecisive from a technical perspective, leaving the battle between bulls and bears with neither side gaining a winning advantage, according to Thomas Anthonj, FX Strategist at JP Morgan.

Key Quotes

"Despite the break above the B-wave target at 1.3483/1.3521 (76.4 %/pivot) in EUR/USD the bulls are far from being safe as momentum is so low that the risk of only overshooting persists."

"That said it will most likely even take a break above 1.3711 (January high) to get them on safe ground for a then indicated extension to 1.3860 (monthly Ichimoku-lagging), to 1.4009 (monthly trend) and possibly to 1.4259 (76.4 %)."

"A break above 1.3608 (pivot/minor 76.4 %) would provide fresh support for them. A break below 1.3462/52 (pivots) would on the other hand signal a B.-or 2nd-wave top in place at 1.3646 which would challenge 1.3307 and 1.3232/1.3191 (daily trend/minor 76.4 %/200 DMA) next."

"So all in all, chances for the bulls and bears appear to be pretty balanced and only a breakout of the described range would provide fresh directions."