Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Euro Currency Bulls May Soon Have Their Day in the Sun

Currencies / Euro Feb 19, 2015 - 10:36 AM GMT

By: EWI

Currencies

Our "Pro Service Outlook 2015" FREE video event introduces you to the near- and long-term forecast for the world's most popular FOREX markets -- and so much more

As the euro clings to the guardrail of a 7- (no, wait) 9- (Doh! there it goes again) now 11-year low, debate over the future of the eurozone's currency rages on. And in the mix, the ultimate four-letter FOREX word just reared its ugly head: PARITY.


"The euro is likely to reach a 1-1 ratio with the dollar for the first time since 2002." (Feb. 2, Wall Street Journal)

Amidst the flurry, we'd like to focus your attention on another word -- CLARITY -- and invite you to take an objective step back and evaluate why the euro is where it is today.

First, you have to go back to the beginning of the euro's dramatic sell-off, to the early part of last year. At the time, the euro was orbiting a 2.5 year high against the U.S. dollar having soared 15% from its 2012 bottom. The strongest thing we remember about this time, though, was how certain mainstream analysts were in the euro's ongoing upside potential.

There were, after all, plenty of "fundamental" reasons to embolden the bullish claim, such as: strong eurozone economic data, growing demand for the euro's perceived safety, and most of all, an accommodative monetary policy by the European Central Bank.

In March 2014, ECB President Mario Draghi gave the ultimate green light to euro bulls: Draghi called the eurozone economy an "island of stability," and foresaw no need for radical, currency-debasing rescue efforts such as rate cuts or quantitative easing. Here, these news items from the time set the scene:

"ECB unlocks the door for further euro strength... and helped the euro realize its pent-up bullish potential." (March 8, 2014 Yahoo! Finance)

"Euro Strength Here to Stay, Unless ECB Steps In" (April 16, 2014 Reuters)

"The euro needs to cross the 1.42 handle before the ECB takes any action to weaken the currency." (May 5, 2014 CNBC)

Yet despite the seemingly perfect euro rally set-up, the bottomed dropped out on May 8, 2014. The euro's dramatic reversal kicked in, even as the ECB held true to its no-action policy until finally pulling the QE trigger on January 22, 2015.

In the end, the euro's fundamental backdrop did NOT lend itself to a major turn.

But in fact, the Elliott wave pattern forefront on the euro's price chart -- did. One day after the euro's 2014 peak, our May 9, 2014 Currency Pro Service posted a special video forecast for the most popular currency pair on the planet: the EURUSD. In that video, Currency Pro Service editor Jim Martens identified a multi-year ending diagonal on the euro's daily price chart. And, as its name suggests, this particular Elliott wave pattern signaled an "end" to the rising trend. Please go ahead and watch this clip from Jim's video to hear him explain the diagonal's bearish implications in person:

As it turns out, the ECB did not "unlock the door to the euro's strength." However, this single Elliott wave pattern did unlock the door to the euro weakness we see today.

And now, as part of our brand-new "Pro Service Outlook 2015" Club EWI event, Jim Martens has recorded a special 8-minute video of the near- and long-term trend changes in store for the EURUSD. There, Jim drops a huge bombshell by showing several key pieces of evidence to support a near-term euro bottom, including a potentially complete five-wave decline from the 2014 peak.

Watch the clip below to enjoy his analysis firsthand:

From there, Jim walks you through the exact trajectory prices must take to confirm a strong move to the upside.

Now get this: Jim's FOREX video is the first of a total FOUR videos included in our "Pro Service Outlook 2015" event. The remaining coverage includes EURGBP, EURJPY, crude oil and gold -- a compilation of some of the world's most highly traded financial markets. And the best part is, you can watch all four videos right now, for FREE!

Never before have we put together such an incredible offer for our ever-growing community of Club EWI members. Join today and take advantage before we wake up and realize we've totally lost our marbles! Access to this incredible "Pro Service Outlook 2015" event ends on February 20, so time is limited.

Click here and follow the fast steps to becoming a Club EWI member.

Or -- for existing Club EWI members, click here to start watching the "Pro Service Outlook 2015" videos today.


This article was syndicated by Elliott Wave International and was originally published under the headline Euro Bulls May Soon Have Their Day in the Sun. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in