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

EUR/USD has tested parity and should see a final spike lower towards the ideal corrective target near 0.9902 to complete wave C of 2 and set the stage for a new impulsive rally in wave 3. Ultimately, this wave 3 should break above the peak of wave 1 seen at 1.6038.

However, for now, we should stay focused on the downside and the final spike lower. That said, we will also stress that the best of the corrective decline in wave 2 now is behind us. It's a question of time before a firm corrective low is in place and renewed strength is seen.