The recent strengthening in the US Dollar is catching the eyes of traders and investors alike.
King Dollar affects so many asset classes, including its own. A stronger US Dollar means a weaker Euro.
Today, we look at the recent trading decline of the Euro on a long-term “monthly” chart.
As you can see, the latest rally in the US Dollar has meant a multi-month decline for the Euro. This has helped to stall out several rallies in commodities, including precious metals.
Investors need to be aware of the Euro’s long-term rising trend line at (1). This support is being tested for the 3rd time in the past decade. And if it breaks, it could signal further strengthening in the US Dollar… and more pressure on commodities.
Looks like the Euro is facing an important test to start off the year! Stay tuned!