17 Jan 2014
Flash: EUR/USD, breakout of 1.3656 -1.3495/68 needed - JPMorgan
FXstreet.com (Bali) - In the short-run, JPMorgan is watching a potential breakout of the 1.3656 - 1.3495/68 range for the EUR/USD to set the next directional bias.
Key Quotes
"we are looking for a range breakout between 1.3656 (minor 38.2 %) and 1.3495/68 (daily trend/daily Ichimoku-lagging) as such a breakout would provide strong indications whether a stronger 2nd wave rebound to 1.3773 (daily breakout line) and to 1.3813/20 (minor 76.4 %/pivot) or a straight extension lower to the next support zone between 1.3335 and 1.3295 (200 DMA/last major low) can be expected next.
"The breakout of this outer range (1.3820 to 1.3295) will then determine the resulting price action whereas the odds are clearly in favour of the bears, who remain in full control as long as 1.3813/20 is not taken out."
Key Quotes
"we are looking for a range breakout between 1.3656 (minor 38.2 %) and 1.3495/68 (daily trend/daily Ichimoku-lagging) as such a breakout would provide strong indications whether a stronger 2nd wave rebound to 1.3773 (daily breakout line) and to 1.3813/20 (minor 76.4 %/pivot) or a straight extension lower to the next support zone between 1.3335 and 1.3295 (200 DMA/last major low) can be expected next.
"The breakout of this outer range (1.3820 to 1.3295) will then determine the resulting price action whereas the odds are clearly in favour of the bears, who remain in full control as long as 1.3813/20 is not taken out."