The recent rally in the Euro currency (EURUSD) has drawn the attention of forex traders, macro investors, and the commodities market. The latter has struggled over the past decade due to a falling Euro / rising US Dollar situation.
As you can see in today’s “monthly” chart, the Euro has been trading within a wide falling channel (1) for more than a decade.
But a multi-month rally in the Euro has given life to the fallen currency, as well as commodity bulls.
The rally brought the Euro all the way back to its overhead channel resistance line at (2). But the Euro has stumbled a bit in 2021 and is now attempting to break its 18-month rising trend line support at (3).
If this happens, it will bearish for the Euro (and bullish for the U.S. Dollar). It could also suggest that the commodity rally is peaking! Stay tuned!