EUR/USD is awaiting a range breakout between 1.3539 & 1.3671 for directions, says JP Morgan.
"No conclusion yet whether the downtrend has already been resumed or whether we are still due for a stronger countertrend rally which would classically stretch out to the upper T-junction at 1.3877 (minor 76.4 %)," JPM argues.
"In order to receive stronger evidence for one of the two scenarios we are looking for a range breakout between 1.3671 (minor 76.4 %) and 1.3557/39 (minor 76.4 %/hourly trend)," JPM adds.
"Above 1.3671 we’d look for an extension to 1.3877 whereas below 1.3539, we’d see key-support at 1.3493/77/68 (weekly trend-last low/monthly trend) in focus," JPM projects.
Meanwhile in Cable, JPM thinks that above 1.6996, the bulls remain in control and 1.7332 in focus next.
"Having finally managed to break decisively above key-pivotal resistance 1.7044/49 (2009 high/2005 low) the market has eliminated the imminent setback risk and has opted for a straight extension higher," JPM argues.
" Looking at the big picture there is now nothing left in terms of resistance up to 1.7332, followed by 1.7768 (50 %/C = A)," JPM adds.
"Only a break below 1.7063 (pivot) and a decisive hourly close below 1.6996 (minor 38.2 %, i.e. below 1.6970) would now question this bull-view in favor of a deeper setback to 1.6386 (int. 38.2 %)," JPM projects. 