EUR/USD, Cable, SP500: Levels To Targets In Risk-Off –

That was quite a market storm, with violent, volatile moves, and it doesn’t seem to be over.

What are the next levels for EUR/USD, GBP/USD and the S&P 500? JPM answers:

Here is their view, courtesy of eFXnews:

The negative performance of leading risk markets is clearly ruling the market action in different asset classes and given the dynamics behind the latest sell-off, there is likely more to come, says JP Morgan.

“Projected targets for an indicated 4th wave setback in the S & P 500 are for example cutting in between 1761 and at 1690/58/34 (int. 38.2 % on 4 scales), which looks to be the minimum target for the ongoing setback,” JPM projects.

Reflecting that in EUR/USD, JPM sees a possibility of extending higher for a test of the key-T-junction at 1.2959 (in. 38.2 %) as long as key-support at 1.2569 (minor 76.4 %) is not broken decisively on hourly close (i.e. below 1.2550).

This projected wave 4 target at 1.2959 (int. 38.2 % on higher scale), according to JPM, remains in focus where a perfect risk reward would be given to bet on the missing 5th wave decline towards 1.2418 & 1.2215 (Fib./w. trend).

In Cable, JPM thinks that as the pair manages to hold above the key-pivotal support around 1.5854,  the door for a bounce remains open.

“But for the latter to really start weakening the prevailing down-bias it would take two consecutive higher hourly closes of the lagging line above the Ichimoku-cloud (currently at 1.6118),” JPM argues.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.