Home EUR/USD Recoveries Are For Sale: Targets & Levels – JP
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EUR/USD Recoveries Are For Sale: Targets & Levels – JP

EUR/USD  has managed to bounce from 1.25 but can it continue  recovering or is it just a correction before the a bigger fall?

The team at JP Morgan sides with the latter view stating  that  the recoveries are for sales and provide explanations and levels:

Here is their view, courtesy of eFXnews:

The defense of the main T-junction at 1.2502 (76.4 %) in EUR/USD opened the door for an internal 4th wave recovery to 1.2959 (int. 38.2 %), where a fresh selling opportunity would be given, argues JP Morgan.

An importunate sign to watch here, according to JPM, is the failure so far to clear first resistance at 1.2797 (monthly breakout line).

This could be an indication that the internal 3rd wave decline is not done yet, which keeps 1.2418 (wave 3 projection) and 1.2214 (weekly trend) in focus, JPM projects.

EURUSD Weekly Chart Below  the bears remain in full control aiming for lower levels October 2014

To confirm a straight extension lower and to delay the expected 4th wave recovery it would however take a decisive break below 1.2569 (minor 76.4 %) on hourly close (i.e. below 1.2550),” JPM argues.

Only a decisive hourly close above 1.2959 (i.e. above 1.2980) would on the other hand start weakening the prevailing down-bias in favor of a stronger recovery to 1.3246 (int. 50 %),” JPM adds.

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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.