EUR/USD continues defying gravity, continuing higher when other currencies slip against the dollar.
Here are two different opinions on what’s next for euro/dollar:
Here is their view, courtesy of eFXnews:
JPM: The bears are on alert, but remain in control for the time-being.
“The break above pivotal resistance at 1.1053/98 sent a first serious warning signal to the ruling bears and opened the door for an extension to the next major T-junction at 1.1267/79 (int. 38.2 % on 2 scales),” JPM clarifies.
“It would take a break above the latter though to really jump scales in favor of a much broader recovery to 1.1534 ((February high) and most likely to the main T-junction on big scale at 1.1699 (int. 38.2 % on higher scale). Breaks below 1.1053 and 1.0987 (pivot/minor 38.2 %) would on the other hand provide fresh support for the bears,” JPM adds.
ING: A buy signal: upgrade rating from ‘neutral’ to ‘up’.
“Prices were very strong yesterday, breaking the horizontal resistance area 1.1030/1.1045. This was a surprise on a short-term basis as we expected a mild pull-back after a test of the 1.1030/1.1045 resistance area, although it confirms the view of a larger consolidation pattern in the next few months,” ING notes.
“The break above the horizontal resistance area 1.1030/1.1045 triggered a Buy signal completing the bottom formation on the upside, suggesting a move towards the upper end of the long-term trading range between 1.1490 and 1.1660. We upgrade our rating to ‘Up’ from ‘Neutral’ and recommend buying the dips towards the bottoming MA-50 line at 1.0879,” ING advises.
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