FX.co ★ Elliott wave analysis of EUR/USD for October 26, 2022

For the first time since early February 2022, EUR/USD has broken above the trendline resistance near 0.9950 and now awaits key resistance at 0.9997. A break above here will confirm that the US dollar has topped out and the tide is turning towards a weaker US dollar in the months ahead.

Once again, the cover of one of the major magazines has proven to work as a powerful contrarian force. On October 7, 2022, Barron's showed the dollar bill as a bodybuilder with the text "The Powerful Greenback". The idea is that one of the major economic magazines designed a cover, saying that no matter whether the US dollar is strong or weak, the trend is close to completion and this has proven to be correct once again. A break above key resistance at 0.9997 will confirm that EUR/USD has bottomed out and a new impulsive rally is set to build in the months ahead.