17 Jun 2015
EUR/NOK: upside favoured near term – JP Morgan
FXStreet (Edinburgh) - According to analysts at JP Morgan, technical studies point to further upside in the cross in the near term.
Key Quotes
“The short term setup for EUR/NOK maintains the bias for additional upside in line with the incomplete rally from the May lows”.
“Importantly, this is view remains consistent with the medium term setup as a broad ABC pattern below the December 2014 peak continues to play out”.
“With this countertrend rally (B wave) likely to extend, the 8.91/8.93 resistance zone is an important test as it represents the 38.2% retracement from the December high and the March peak”.
“Above this area would suggest a deeper recovery phase can develop with potential for test into the 9.10/9.20 zone (50% retracement)”.
“A violation of the 8.66/8.58 support levels would question the upside bias and argue for a deeper setback. Still, the 8.31 May low will now define whether the medium term decline is back on track”.
Key Quotes
“The short term setup for EUR/NOK maintains the bias for additional upside in line with the incomplete rally from the May lows”.
“Importantly, this is view remains consistent with the medium term setup as a broad ABC pattern below the December 2014 peak continues to play out”.
“With this countertrend rally (B wave) likely to extend, the 8.91/8.93 resistance zone is an important test as it represents the 38.2% retracement from the December high and the March peak”.
“Above this area would suggest a deeper recovery phase can develop with potential for test into the 9.10/9.20 zone (50% retracement)”.
“A violation of the 8.66/8.58 support levels would question the upside bias and argue for a deeper setback. Still, the 8.31 May low will now define whether the medium term decline is back on track”.