EUR/USD: A break below 1.0744 would open Pandora's box (JP Morgan)

In a note published today, JP Morgan commented on the EUR/USD, and believes that the market has once again  not dared demonstrate the breaks necessary for the trend to become clearer.

The bank notes in fact that the EUR/USD continues to bounce between the edges of the current range (1.0772/44 to 1.1071), which must be broken through for the currency pair to display a more clear direction.

A break above 1.1071 would allow us to target a minimum recovery at 1.1288. A break below the 1.0772/44 area would instead open the "Pandora's box" regarding the long-term downward trend, and in this case, we could consider the minimum target to be 1.0072."