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EUR/USD: Wave Analysis & Setup – Nomura, JP Morgan

After the huge Draghi drama, where is EUR/USD headed next?

The teams at Nomura and JP Morgan provide analysis:

Here is their view, courtesy of eFXnews:

The technical strategy teams at Nomura and JP Morgan provide their insights on the Elliott-Wave analysis and setup for EUR/USD around current levels. Nomura’s view has a shorter time-frame than that of JP Morgan.

Nomura: Once retracement completes, expect another 5-wave rally.

“Euro is correcting the first wave higher from 1.0524. So far the retracement has met the 38.2% Fib at 1.0805. The previous 4th wave low at 1.0789 also offered minor support for this corrective pullback.

S/t, we expect the 1.0800/0780 zone to mark a corrective low but there is scope for a deeper retracement to 1.0750 or 1.0700.

Because we saw a 5-wave rally off the low, we are looking for another 5-wave rally once this pullback completes,” Nomura argues.

EURUSD wave analysis December 8 2015 Nomura

JP Morgan:  Given structures are still endangering the 2015 low at 1.0462.

“Despite the massive short-covering rally of Thursday last week we still see a very high likelihood that we are only dealing with an internal 4th wave recovery which would not penetrate the wave 1 low at 1.1087.

Below the latter the odds remain in favor of a continued and incomplete down-rotation which should at least challenge key-support at 1.0485/62 (wave 3 projection/2015 low).

A break above 1.1087 though would indicate a game change in favor of a broader recovery, which would need a break above 1.1216 (w. trend) to be confirmed,” JPM projects.

JPM EURUSD December 2015 analysis

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.