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The Euro's 10 Percent Rally: A Tale of Two Forecasts
See how the European Financial Forecast Service anticipated the euro's big rally

By Nathaniel Williams
Fri, 11 Jan 2013 11:15:00 ET
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$1= €1.
Perhaps you remember the July 16, 2012, issue of Barron’s with this bold forecast on the cover. Inside, an article titled "The Fate of the Euro" surveyed Europe's tumultuous financial landscape (emphasis added):
"To resolve its debt crisis, Europe has to continue to cut social spending and reform its labor laws, but it must also engage in a massive stimulus program. One result: The euro is likely to fall sharply, perhaps to the point where $1 equals €1."
And Barron’s wasn’t alone in its pessimistic forecast -- there were only 4% euro bulls in late July. Furthermore, the euro had already fallen 18% against the dollar in the previous 14 months, as you can see in the chart.

(from The European Financial Forecast, 7/27/12)
But EWI's comprehensive European Financial Forecast Service had a starkly different message. Indeed, just one week after the bearish forecast in Barron’s, the July 23 European Short Term Update examined the Elliott wave patterns and published this urgent note about the euro:
"The potential for a near-term intermediate low is real…"
Later that week, the July 27 The European Financial Forecast similarly proclaimed: "Relief Rally Likely."
These forecasts were radical -- going against the fundamentals and consensus opinion -- yet they were spot on. Just one day after The European Short Term Update's forecast, euro prices hit a two-year low. Since then, they have surged more than 10%, as you can see in the chart below.

(from The European Short Term Update, 1/7/13)
The European Financial Forecast didn't need to look at fundamental issues like the European debt crisis, because our research has shown that such fundamentals lag the stock market. Instead, our analysts applied the Elliott Wave Principle's timeless insight that markets are patterned and predictable to anticipate where the euro was headed -- with stunning results.
Here's the most important question: What's next for the euro? The European Financial Forecast Service will bring you an invaluable, well-reasoned perspective for both the near term and the intermediate term.
If you stick with mainstream financial publications, you might miss the next major opportunity in the euro and European markets. Do yourself a favor and step ahead of the trend with independent, Elliott-wave insights. Read more.
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The European Financial Forecast. The January issue delivers in-depth forecasts and unparalleled analysis for the DAX, FTSE, CAC40, EuroStoxx, euro and more.
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EFFThe European Financial Forecast gives you an invaluable big-picture outlook for major European bourses to give you an edge over the investing herd.

Each monthly 10-page issue gives you timely, Elliott wave analysis and forecasts of the DAX, FTSE, CAC, Euro Stoxx 50 and more, plus commentary on economic and social trends.

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