Chart Check Euro and Dollar Currencies: Strong Euro Losses After Extended Sideways Trend

The euro exchange rate against the three dollar currencies (USD, CAD, AUD) moved sideways within a narrow range since the summer of the previous year. In mid-January, the euro began an upward movement against the US dollar and the Canadian dollar. In relation to the Australian dollar, the opposite occurred: it moved downward (a trend that was already minimally indicated during the sideways movement since approximately October).

At the beginning of March, the euro then declined rapidly against all three currencies equally.

Chart Euro vs Dollars — *Source: Comdirect*

Overall, the euro’s movement against the Australian dollar stands out during the observation period due to significantly stronger fluctuations—therefore, we will examine the AUD chart separately once more.

Chart Euro vs Australian Dollar — *Source: Comdirect*

The long-term chart of the euro against the Australian dollar shows three contacts with the red downtrend line. Each time, it rose very rapidly and also declined rapidly again. The duration at the red line was several months for the first and current contact—the “Corona top” was very brief.

Since 2012, two green uptrend lines can be derived—the upper one is currently being reached. This could initially halt the decline—moreover, the exchange rate is now also near the round mark of 1.60 AUD, which represented stable support in 2023 and 2024.

European shareholders of Australian companies can currently enjoy currency-related gains of approximately 10% since autumn.

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