EUR/USD: the pair's bearish correction target has not yet been reached (JP Morgan)

JP Morgan believes that the EUR/USD may still decline on the forex, but it will be necessary to monitor its reaction in the 1.0494/74 zone:

"Following the last few weeks, the EUR/USD's bearish reversal has extended its losses, but has lost momentum as it approaches crucial support at 1.0590/89 (76.4% Fibonacci level and a daily close trend line).

The latter and another group of support levels at 1.0494/74 (pivot and long-term 76.4% Fibonacci level) are the typical targets of a counter-trend decline and the potential triggers of a larger recovery. Above, a minimum rebound to 1.0840 (76.4% Fibonacci) remains probable, while a decisive break below 1.0474 would expose the 1.0072 threshold (76.4% retracement of the 2000-2008 rally)."