The euro certainly enjoyed the Chinese mess (and a few other factors) sending it to the highest level in a month.
What’s next? The team at JP Morgan analyzes the technical levels:
Here is their view, courtesy of eFXnews:
The Euro managed to extend its gains across the board this week and is now challenging key-resistance barriers, notes JP Morgan.
“These have to be cleared though in order to confirm a scale jump in favour of a broader recovery,” JPM argues.
Specifically in EUR/USD, JPM thinks that breaks above 1.1288 are needed to get into clear positive territory.
“The latest break above 1.1058 (daily trend, now support) is certainly improving prospects of a broader recovery unfolding,” JPM adds.
“In case the latter would be taken out we’d still need a confirming break above 1.1288 (int. 76.4 % on higher scale) to constitute a scale jump in favor of a broader recovery towards 1.1699/1.1811 (int. 38.2 % on highest scales),” JPM projects.
“Particularly back below 1.1129 though, key-support at 1.0778/44 (daily trend/int. 76.4 %) remains in focus and at risk,” JPM adds.
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