FX.co ★ Elliott wave analysis of EUR/USD for November 18, 2021

EUR/USD is now testing the 61.8% corrective target of wave 1 and wave 2 is likely close to completion. We expect to see another test of the 61.8% target at 1.1292 before the low is in place and wave 2 has been completed. Wave 3 can take over for a rally towards 1.3993.

Even though we see signs of a low near the 1.1292 target, only a break above resistance at 1.1609 will confirm that a low is in place and wave 3 is developing. So trying to pick the bottom is high risk and at this point, we cannot exclude more downside pressure. Yet, it is unlikely to happen.