Since around October 2016 I have been making a case for an Elliot Wave count on E/U. At this point in time the pair seems to still be in a W:4 correction. Using this months pivot theory a likely target could be the Monthly M4 @ 1.0870. This also works well with 2 support and resistance zones shown in blue rectangles and closely seen psych levels. If price does reach the MM-4 watch for that level to hold and keep in mind a reversal can take some time as well off that level given the time frame being analyzed.

Fundamentally the FOMC was not as hawkish as the market expected and is the likely reason for the dollar weakness even tho rates increased and gives support for more upside in E/U.

Lets see how it plays.


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