FX.co ★ Elliott wave analysis of EUR/USD for December 22, 2021

The wave 2 correction is in its final stages, but do we need to see a final spike down to the 1.1139 target or is the low already in place and a break above minor resistance at 1.1383 is in store? Ideally, we will see a final spike lower to the 1.1139 target. That is likely to trigger some stops just below 1.1227 and increase the volume enough to satisfy the large investors so we can start the impulsive rally in wave 3 towards the 1.3993 target.

The trigger is a break above minor resistance at 1.1383 that confirms wave 2 is completed and wave 3 higher is in motion.