The Euro has been going down recently.
- The EURUSD is already down 6 weeks in a row.
- If it closes lower this Friday than it did last Friday, the EURUSD will be down 7 weeks on a row.
In this study we’re going to look at:
What happens next to the Euro when it falls 7 weeks in a row (using CLOSE $)
We’re also going to look at:
What happens next to the Euro when it falls 7 weeks in a row (in case this Friday closes higher than last Friday).
As you can see, the Euro’s forward returns are terrible on a short term and medium term basis. In other words, falling 6 or 7 weeks in a row indicative that the Euro is in a downtrend.
Here are the forward returns. Look at all the red.
Click here to download the data in Excel.
Here are the 4 historical cases in which the Euro fell 6 consecutive weeks.
January 20, 2015
February 16, 2010
August 7, 2000
November 22, 1999
This study is a short-medium term bearish sign for the Euro. It is a short-medium term bullish sign for the U.S. Dollar.
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