FX.co ★ Elliott wave analysis of EUR/USD for October 24, 2022

After a strong decline in EUR/USD over 14 years, the US dollars show signs of weakness. So, we are looking for a break above resistance at 0.9997 to confirm that the US dollar has topped and completed the corrective decline in EUR/USD from 1.6038 to 0.9507. We want to check whether the next impulsive rally to well above the peak of wave [A] 1.6038 has begun.

As the last part of the decline in EUR/USD from 1.2266 to 0.9507 has been fast, we should expect an equally strong rally once resistance at 0.9997 breaks and the US dollar comes under pressure. The first major target to look for is June 2021 peak at 1.2266, but in the longer term, we should see a much weaker USD.