FX.co ★ Elliott wave analysis of EUR/USD for July 20, 2021

Risk aversion keeps EUR/USD near the long-term support line near 1.1771 and a clear break below here and more importantly a break below support seen at 1.1704 will indicate a major top is in place for a decline to 1.0983 (Should/Head/Shoulder top).

That said, the preferred count expects these supports to be able to protect the downside for a break above minor resistance at 1.1880 and more importantly a break above resistance at 1.1975 for a final rally towards 1.2763 to complete the five rally from March 2020 low at 1.0636.

Trading recommendation:

Buy EUR on a break above 1.1880 for a rally to 1.2763 or sell a break below key-support at 1.1704 for a decline to 1.0983