FX.co ★ Elliott wave analysis of EUR/USD for February 2, 2022

EUR/USD finally seems to have complete the wave 2 correction from 1.2350. From an EW perspective wave 2 was a flat correction even though wave c moved all the way down to the 70.7% corrective target of wave 1 at 1.1131.

We are now looking for a break above minor resistance at 1.1483 as confirmation that wave 2 has bottomed and wave 3 towards 1.3993 is in motion. The rally to 1.3993 should be a strong impulsive rally as it will be wave 3 of (3) which normally is the strongest of the impulsive waves.