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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.  

EURUSD August 2015 JP Morgan technical graph for currency trading euro dollar

“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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