EUR/USD: The rebound may be over says JP Morgan

The failure of the EUR/USD in recent weeks to break the first resistance level at 1.1389 (38.2%), suggests that the market has potentially completed an A-B-C counter-trend rebound figure, as outlined in blue in the chart below, notes JP Morgan.

"An extension to 1.1477 (projection of the 3rd internal green wave) or even 1.1699 (38.2% on the upper scale) cannot be ruled out, as long as the pivotal support between 1.1112 and 1.1066/53 (38.2% minor/pivot) is defended", projects JP Morgan.

"For the latter to be supported, it would take a decisive hourly close above 1.1330 (above 1.1350)", adds JP Morgan.