FX.co ★ Elliott wave analysis of EUR/USD for January 13, 2022

EUR/USD has finally broken above short-term resistance at 1.1383 indicating that wave 2 completed with the test of 1.1186 and wave 3 towards 1.3993 now is in motion. This was in compliance with our preferred count.

That said, EUR/USD is already facing the first hurdle in form of the resistance-line of the descending channel here at 1.1445, this could lead to a temporary set-back to test the break-out level at 1.1383 before the next rally higher, but it's not a must, that EUR/USD is halted by the resistance-line. The USD is under pressure at the moment and stops could easily trigger a continued rally higher towards the next hurdle at 1.1709.