euroclustersupport1yearroclowestevermarch25CLICK ON CHART TO ENLARGE

The past year has been rough on the Euro/USD! How rough? The bottom section of the above charts looks at the 52-Week rate of change on the Euro, which reflects the Euro/USD has had the worst one year decline in its history.

The decline has driven the EUR/USD to a potential cluster of support (top red rectangle).

The historical decline in the EUR/USD has had a big impact on sentiment. The chart below from Sentiment Trader, reflects that just 19% of investors are bullish the Euro at this time.

eurobullssentimentmarch25CLICK ON CHART TO ENLARGE

Does it seem crazy to think that the Euro could actually bounce? I can understand if you feel that way, as the trend for sure is lower at this time.

I like this theme…its not the odds of something happening that is key, its the impact if it does. The odds might be low that the Euro rallies, if it does,┬áthe impact could be rather big since┬ásuch extremes are in play.

Should the Euro rally, odds are decent that the metals complex (Gold, Silver and Miners) could be a beneficiary. Stay tuned friends, this could get interesting. Should the Euro rally, it would surprise a good number of investors, as 89% of investors are bullish the US$ at this time (record levels)!

 

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