The euro is in big trouble if this support fails! (Observation of the markets)
There are a lot of economic changes/anxieties brewing at home and across the Atlantic Ocean in Europe right now.
With the war in Ukraine and the current sanctions against Russian goods and energy, things are starting to look dark for the European economy. And the euro is showing weakness.
That said, this weakness contrasts sharply with the strength of the US dollar. And the recent weakness of the euro is helping to control some commodities.
Jo Friday:The facts, ma’am. Just the facts.“
Today we take a look at the long term “monthly” chart of the Euro and focus on the price action.
As you can see, the Euro has been trading in a declining channel for almost 15 years. And the recent downturn is testing the double bottom support at (1).
Commodity bulls would like this support to hold and the Euro to rebound/US Dollar to decline. If this support does not hold, it likely means a significantly weaker Euro (with lower support up to 90 and 80) and a stronger US Dollar. This would be a headwind for commodities and possibly a slowdown in inflation. Stay tuned!
Euro “monthly” chart
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