FX.co ★ Elliott wave analysis of EUR/USD for January 4, 2022

EUR/USD has been trading sideways for more than a month now, locked inside a narrow range between 1.1235 - 1.1383. We need either side to give away to see the next major move. We continue to prefer resistance at 1.1383 to be broken for confirmation that wave 2 has completed and wave 3 higher towards 1.3993 is unfolding. That said, under no circumstance we can exclude, that it's support at 1.1235 that will give away for a final dip closer to the 50% corrective target at 1.1139 before wave 2 finally comes to a halt and tunes higher in wave 3 towards the 1.3993 target.

So be patient and wait for either side to break. A break of support should better prices near 1.1139 while a break above 1.1383 will confirm wave 3 already is in motion.