Bank Recommendations

Published 12/18/2006, 07:00 PM
Updated 04/25/2018, 04:40 AM

JP MORGAN TECHNICAL ANALYSIS TEAM

EUR/USD: "The pullback from $1.3370 still looks corrective to us and we have now entered the ideal basing zone where we added to longs. Also note that in a trending environment the RSI pulls back to between 45 and 35 before turning and that's where we have reached. Probabilities are very much in favour of the dollar turning around into the New Year and ideally targeting $1.35/1.36. We will start to worry up there though."

EUR/CHF: "Prices have pushed to new highs but we are still in a well defined channel and at the top of that process. Be wary of a pullback towards 1.5650/25 francs."

EUR/JPY: "We still expect euro/yen to break to new highs, but this cross also looks set to range for a while before that move develops."

UBS TECHNICAL ANALYSIS TEAM

EUR/USD: "Still under pressure with the pair trading close to the 38.2 percent retrenchment at $1.3030. A break of this level would open $1.2980 which marks the former key breakout point and is also seen as the major support. On the upside, resistance this morning lies at $1.3187. From a medium-term perspective, the underlying bull trend remains intact while $1.2980 holds.

USD/CHF: "Holds onto gains with scope next for the Sept. 25 low of 1.2291 francs. A break here would expose the 50 percent retracement of 1.2771-1.1879 at 1.2325. Mild support is at 1.2117, a recent reaction low."

EUR/GBP: "Recovering from what could be a double bottom at 66.92 pence, but only a sustained move above a reaction high from last Thursday at 67.31 would offset the recent downward pressure. A move lower again would again expose the Oct. 31 66.69 low.

GBP/USD: "Facing increasing risks of further downside towards next support at $1.9342, 50 percent retracement of the $1.8835-1.9849 rise. At this point, a break above the Dec. 13 high of $1.9730 is needed to mark an end to the recent decline."

EUR/JPY: "Only a break of the 152.42 yen Dec. 6 prominent reaction low would end the bullish trend of higher highs and higher lows in the short term. While this holds, we favour a resumption of gains with the next key bull trigger at 155.59."

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