Flash: EUR/USD at great risk of performing C wave down to 1.2453 - JPMorgan

FXstreet.com (Barcelona) - Following the failure by the EUR/USD to clear 1.3483/1.3521 with the subsequent strong sell-off towards 1.3230 weekly low, according to Niall O'Connor, FX Strategist at JP Morgan Securities, "the market remains at great risk of at least performing a C wave down to 1.2453."

O'Connor only sees a more meaningful recovery by the EUR/USD on a break above 1.3521, which as the Strategist notes, "would eliminate these threats in favor of the blue scenario which would allow for extensions into 1.4074 (monthly trend) and ultimately to 1.4259/83 (76.4 % on big scale/pivot)." Lastly, O'Connor suspects that confirmation that the broader bear trend has resumed will only be given "below pivotal support at 1.3190/66, the 1.3102 level (200 DMA) and ultimately below 1.2907 (minor 76.4 %)."