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5 May 2015
EUR/USD: Risk for a deeper recovery phase - JPMorgan
FXStreet (Bali) - Niall O'Connor, FX Strategist at JP Morgan, notes that there is a growing risk for a deeper recovery phase in EUR/USD.
Key Quotes
"The key focus is on EUR/USD as last week’s extension above the recent range highs near 1.1033/65 confirmed at least a short term low in place with a growing risk for a deeper recovery phase."
"Still, we note the advance has already met the next line of important resistance in the 1.1267/80 zone. Note this area represents a strong confluence of resistance that includes the former range lows from February, the late-February breakdown area as well as the 38.2% retracement of the decline from the December high."
"Again, the near term setup can allow for some pause but the risk of a deeper retracement should prevail against key support starting at the 1.1055/1.0990 support zone."
Key Quotes
"The key focus is on EUR/USD as last week’s extension above the recent range highs near 1.1033/65 confirmed at least a short term low in place with a growing risk for a deeper recovery phase."
"Still, we note the advance has already met the next line of important resistance in the 1.1267/80 zone. Note this area represents a strong confluence of resistance that includes the former range lows from February, the late-February breakdown area as well as the 38.2% retracement of the decline from the December high."
"Again, the near term setup can allow for some pause but the risk of a deeper retracement should prevail against key support starting at the 1.1055/1.0990 support zone."