25 Mar 2014
Potential USD bullish shift - JPMorgan
FXStreet (Bali) - Niall O'Connor, FX Strategist at JPMorgan, notes that the backdrop for the USD pairs reflects a potential bullish shift.
Key Quotes
"In line with the break of key levels, the likes of EUR/USD and GBP/USD are showing signs that the persistent trends over the past few months are finally faltering."
"For EUR/USD, the failure to maintain to the extension above the key 1.3845/22 support zone likely confirms that the consecutive higher weekly closes will end this week at six. Again, this area included the violated trendline from the 2008 cycle high."
"Moreover, it is important to note that GBP/USD violated the key uptrendline from the July '13 low near 1.6575 which suggests a growing risk that a deeper corrective phase initially into the 1.6253 February low."
Key Quotes
"In line with the break of key levels, the likes of EUR/USD and GBP/USD are showing signs that the persistent trends over the past few months are finally faltering."
"For EUR/USD, the failure to maintain to the extension above the key 1.3845/22 support zone likely confirms that the consecutive higher weekly closes will end this week at six. Again, this area included the violated trendline from the 2008 cycle high."
"Moreover, it is important to note that GBP/USD violated the key uptrendline from the July '13 low near 1.6575 which suggests a growing risk that a deeper corrective phase initially into the 1.6253 February low."