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Flash: EUR/USD, H&S continuation pattern implies downtrend resumed - JPMorgan

FXstreet.com (Barcelona) - The fall in EUR/USD from 1.3243 implies that the right shoulder top of a broader H & S continuation pattern is already in place and that the broader downtrend has been resumed, says John Normand, global head of FX at JPMorgan.

John notes: "In order to confirm the latter though, it takes a decisive break below 1.2764 (weekly neckline); such a break would at least challenge the main T-junction at 1.2436 (int. 76.4 %), which would still need to be broken to open the way for a much deeper decline to the H & S projection at 1.1860 which matches the 2010 low at 1.1876."

"Above 1.2764 though, the market keeps the door open to potentially perform another recovery (c-wave) to 1.3307 (weekly trend channel) and to 1.3483 (minor 76.4 %) at best" John added.

Will upcoming BoJ statement be the catalyst to take EUR/JPY above and beyond 133.00?

The EUR/JPY finished the day up 55 pips at 132.29, consolidating just below the 133.00 resistance level which has basically been the top of the recent trading range established over the last eight trading sessions.
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Flash: Bernanke testimony to overshadow FOMC minutes - BNZ

Less than 16 hours away from Fed Bernanke testifying on the Economic Outlook and Monetary Policy before the Joint Economic Committee in Washington DC at 14:00 GMT, the EUR/USD is again above the 1.29 handle, last at 1.2917.
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