There is a lot of economic change/concern brewing at home and across the Atlantic Ocean in Europe right now.
With the war in Ukraine and current sanctions against Russian goods and energy, it’s beginning to look a bit dim for the European economy. And the Euro currency is showing weakness.
That said, this weakness is in stark contrast to US Dollar Strength. And recent Euro weakness is helping to keep some commodities in check.
Joe Friday: “The facts, Ma’am. Just the Facts.“
Let’s dig in. Today we look at the Euro’s long-term “monthly” chart and focus on the price action.
As you can see, the Euro has traded within a falling channel for nearly 15 years. And the recent turn lower is testing double bottom support at (1).
Commodity bulls would like to see this support hold and the Euro bounce / US Dollar decline. If this support fails to hold, it likely means a significantly weaker Euro (with lower support all the way down at 90 and 80) and stronger US Dollar. This would be a headwind for commodities and perhaps slow inflation. Stay tuned!
Euro Currency “monthly” Chart
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