FX.co ★ Elliott wave analysis of EUR/USD for July 6, 2022

EUR/USD broke below key support at 1.0340, telling us that wave 2 still isn't complete and more corrective downside pressure towards 0.9902 is needed to complete the double zig-zag correction from 1.6038. A dip closer to the 78.6% corrective target at 0.9902 should be able to complete wave 2 and set the stage for the next impulsive rally in wave 3. This wave should ultimately break above the peak of wave 1 at 1.6038.

Short-term we see resistance at 1.0448 that ideally should be able to cap the upside for the continuation lower to test 0.9902 but only a break above resistance at 1.0774 will confirm that wave 2 already is complete and wave 3 is in motion.