The cautious up-trend of the USD over the course of the last 4-5 weeks has finally reached crucial resistance barriers, which if taken out, would constitute a game change on bigger scale, notes JP Morgan.
“These are in close reach now or already under attack and cut in at 80.599/753 (pivot/minor 76.4 %) in the USD Index,” JPM adds.
Thus, as the USD Index looks to be capped at the key-resistance at 80.599/753 for the time being, JPM sees the start window for a temporary EUR/USD recovery open which would need a break above 1.3646 to 1.3658 (200 DMA/hourly trend) though to be kick-started.
“Such breaks are absolutely needed to free the way for a 2nd.-or B-wave rebound to 1.3868/97 (daily breakout line/minor 76.4 %),” JPM projects.
“Below 1.3646/58 though, the bears remain in control and 1.3477 (2014 low) in focus,” JPM adds.
