FX.co ★ Elliott wave analysis of EUR/USD on February 16, 2023

The correction from 1.0804 pushed lower than expected but stayed nicely above the key support at 1.0655 to confirm the new impulsive rally we have been looking for. Short-term we would like to see a break above minor resistance at 1.0745 to confirm that key support at 1.0655 is safe and the next part for the impulsive rally in wave 5 towards the target area between 1.1108 and 1.1188 is developing. We could see EUR/USD moving above the 1.1108 - 1.1188 target area, but as always let's take the expected rally higher in baby steps.