From JP Morgan technical analysts:

  • The well-established downtrend of the EUR shows only temporary supports at 1.3100 and at 1.2910
  • Given the extent of the latest down-cycle from 1.3701 in EUR/USD we are confident of dealing with an internal 3rd wave decline which could end at 1.3104/01 (Sep. 13 low/weekly Ichimoku-lagging) or at 1.2916/08 (weekly trend/wave 1 x 1.618).
  • One of these support clusters will most likely provide the launch base for an internal 4th wave recovery,which has currently a projected target at 1.3362 (mino r 38.2 %).
  • Only above the latter and above pivotal resistance between 1.3449 and 1.3503 we’d see room for a stro nger recovery to 1.3701 or 1.3795 (pivot/int. 76.4 %).
EURUSD technical analysis chart from JP Morgan 02 September 2014

Chart 1: EUR/USD – Daily Chart: 1.3104/01 and 1.2916/08 are seen as the potential launch bases for an internal 4th wave rebound

As for EUR/JPY the focus is now on key -resistance between 138.04 and 138.70 (daily neckline/minor 38.2 %). Below the down-bias remains intact and 135.55 (minor 38.2 %) to 134.36 (C = A) in focus, which if taken out would even call for a deeper setback to 128.10 (38.2 % on higher scale).

In EUR/CHF we are waiting for a range breakout between 1.2123/41 (minor 38.2 %/pivot) and 1.2028/00 to 1.1974 (pivot/SNB floor/pivot) to establish a new trend.