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EUR/USD and GBP/USD are experiencing weakness. However, upon recoveries, what are the preferred tactics?

The team at JP Morgan marks key levels for both euro/dollar and cable:

Here is their view, courtesy of eFXnews:

The recovery attempts of the EUR are still weak and lack follow-up once a minor resistance has been taken out, which is still painting a rather weak picture, notes JP Morgan.

That said, JPM warns that  above 1.2441 (minor 76.4 %), the risk of running into a stronger bounce persists, but it would take a break above 1.2612/14 (hourly trend/pivot) for the latter to jump scales.

Such a break, according to JPM, would deliver strong evidence that we are at least dealing with a 4th wave rebound on higher scale which would most likely challenge the main T-zone at 1.2871/88 (int. 38.2 %/pivot.

A failure to clear 1.2612/14 and/or a break below 1.2441 would on the other hand get 1.2318/1.2260 (Fib’s) and 1.2223 (w. trend) back in focus,” JPM projects.

EURUSD Levels November 19 2014 technical analysis currency trading JP Morgan

Same for Cable, where JPM notes that it has reached weekly Ichimoku-support for the lagging line at 1.5596 last Friday suggestion that the market started stabilizing.

This according to JPM, opened the door for a temporary bounce to 1.5728 (minor 38.2 %) and most likely to 1.5820/39 and 1.5949 (int. 38.2 % on higher scales) where the upside looks capped

Provided these key-resistance barriers are not taken out, we’d see the broader downtrend as unharmed and would expect the resumption of the broader downtrend for a test of 1.5374 (int. 76.4 %) shortly,”JPM projects.

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