Wed, Oct 05, 2022 @ 14:40 GMT
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Elliott Wave Analysis: EUR/USD Resumes Downtrend for a Fifth Wave

EURUSD saw some recovery on Wednesday after FOMC meeting when Powell was not as hawkish as many expected. But pair, however, is coming down again, away from 38.2% Fib retracement level that was a perfect fourth wave resistance, so the euro remains in a downtrend for now, ideally, until we see five waves down. Notice that the price is pointing even deeper now into the fifth wave, possibly to the 1.0350 Fib target area in the near term. If we are correct, then the pair may stabilize later this month but we will need a hawkish ECB for that to happen. Also, let’s not forget on NFP today, data that will be tracked closely as this one should be important for further FOMC decisions regarding the interest rates.

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