FX.co ★ Elliott wave analysis of EUR/USD for February 22, 2022

The tension between Russia and Ukraine went up a notch yesterday as the Russian President Putin recognized two Ukraine states as independent states and sign an agreement for military help. This of course helped the safe-haven currencies like USD, CHF and JPY move higher and we see EUR/USD moving closer to the 61.8% corrective target at 1.1260 and maybe even closer to the 78.6% corrective target at 1.1200, but the decline from 1.1484 remains a corrective decline in our view, which means once this correction is complete a new impulsive rally towards the resistance line near 1.2063 and ultimately a continuation higher to the extension target at 1.3993 should be expected.