FX.co ★ Elliott wave analysis of EUR/USD for October 19, 2021

EUR/USD slipped just below the support line close to the 50% corrective target at 1.1497. However, EUR/USD declined just below this support level. It is now back inside the corrective channel and we could have seen a Bear-Trap. This Bear-trap has likely forced a lot of EUR-longs to exit their position and we have likely many new EUR-shorts established upon this break below the support line and they are now in doubt.

It will likely take a break above minor resistance at 1.1756 to force many of these new EUR-short positions and a break above resistance at 1.1909 will force most short-positions out and see a lot of new EUR-long positions for a rally above the peak of wave 1.2350 towards the wave 3 target at 1.3993.

It will take a break below support at 1.1524 to resume the bearish bias.