After a Lost Decade, Currencies Burst Back into Play

[Trading With Larry Benedict]( After a Lost Decade, Currencies Burst Back into Play By Larry Benedict, editor, Trading With Larry Benedict The past year’s huge ramp-up in interest rates has caused some of the market’s high fliers to come crashing back to Earth. Add in the turmoil from bank collapses to an increasingly shaky economy, and many investors are confused. Do they ride it out… or cash out and wait for all this uncertainty to unwind? Yet there’s one interesting way to profit in times like these… Big interest rate moves can offer massive opportunities in the currency markets. You just have to know [how to trade them](. So today, we’ll check out the Invesco CurrencyShares Euro Trust ETF (FXE). This ETF enables you to trade the euro against the U.S. dollar. Recommended Link [Thousands a month ain’t bad...]( [image]( “What if I told you that you could make $3,173 a month... or more based on your investment size... even in this crazy market? I’m not saying it’s possible... I’m telling you that my readers already have access to this kind of income. Now, you can acquire it as well. If you’re like most people, you’re concerned that the market will get worse. And if that’s the case, you’ll want to obtain my strategy and research right now. My service is designed to help you sleep well at night in all market conditions. I’ll explain everything [right here]( – including how to access my research.” – Brad Thomas [Click for details here.]( -- Peaked and Reversed The chart of FXE below plots the euro against the U.S. dollar. Each bar represents one week of price action. When FXE is rising, that means the euro is outperforming (or is stronger than) the U.S. dollar. And when it’s falling, the euro is underperforming (or weaker than) the U.S. dollar… Invesco CurrencyShares Euro Trust ETF (FXE) — Weekly Chart [Image] Source: eSignal From 2019 into early 2020, the euro was slowly drifting lower against the USD. In 2019, FXE slid by 2-3%. The Relative Strength Index (RSI) shows how little buying momentum there was throughout this period. It was stuck in the lower half of its range (below the green line). However, that all started to change around April 2020 when the Fed sprang into action and cut rates during the COVID crisis. The U.S. dollar weakened quickly against the euro, causing FXE to rally strongly. When FXE topped out in January 2021, it had risen 15% in just 10 months. However, a diverging pattern (orange lines) from the RSI set FXE up for a reversal… While FXE was making higher highs, the RSI peaked and started reversing, making lower highs from overbought territory (upper grey dashed line). That fall accelerated as the RSI fell back into its lower range. And the 10-week Moving Average (MA, red line) crossed below the 50-week MA (blue line), with both MAs then heading down. As we came into 2022, FXE was consolidating (red line) just slightly above its pre-pandemic levels. Take another look… Invesco CurrencyShares Euro Trust ETF (FXE) — Weekly Chart [Image] Source: eSignal But the Fed began ramping up its tightening cycle, strengthening the U.S. dollar. And the euro soon started another major leg down. By the time FXE bottomed out in late September, it had lost 24% from its 2021 high. Since then, FXE has again reversed, this time breaking higher to short-term highs. So with that move now at a crucial stage, what can we expect from here? [Viral Trading Secret Exposes: “America’s #1 Retirement Stock”]( Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Short-Term Highs FXE’s up move after its September low coincided with the RSI rallying from oversold territory (lower grey dashed line). And the 10-week MA broke back above the 50-week MA (blue line), confirming that move. Yet FXE’s up move peaked and reversed at ‘A.’ And the RSI made an inverse ‘V’ and drifted lower from overbought territory. But then, the RSI bullishly bounced off support (green line). Now FXE is fast approaching its recent high at ‘A’… right as the RSI is nearing overbought territory. So what happens here will be key. If the RSI tracks along the overbought line without a reversal, then FXE could break above ‘A’ and rally to a new short-term high. Regards, Larry Benedict Editor, Trading With Larry Benedict P.S. As I mentioned today, currencies are seeing new interest in this market. After staying quiet for roughly a decade, shifting interest rates around the world are suddenly giving this market a comeback. I’ve traded currencies since the ’80s. It’s one of the ways I’ve profited during my career, even when the stock and bond markets turned shaky like in 2008. So if you’re interested in learning more about [how to potentially make thousands each month by trading currencies]( – often called “forex” – then I’d like to invite you to my upcoming event on April 19. That evening, I’ll share why this moment in currencies isn’t one to miss… and even talk about my favorite currency to trade right now. [To RSVP with one click, simply go right here to sign up.]( Reader Mailbag What are your predictions for FXE? Let us know your thoughts – and any questions you have – at feedback@opportunistictrader.com. IN CASE YOU MISSED IT… [Trade ONE Stock for Life? Become 100% Market Proof?]( Is it possible to QUIT investing in 99.9% of stocks and make MORE money? Even during America’s biggest crashes like 2000, 2008, 2020, and 2022? One reclusive trading millionaire has done exactly that… nailing MORE winning recommendations than ever. - A record-breaking 800 winning trade recommendations… - 10 “Double Your Money” trades in 2008… - 7 “Double Your Money” trades in 2020… - [12 “Double Your Money” trades in 2022…]( - And predicted the 2020 & 2022 crash weeks in advance… Now, he’s revealing what he calls: [The #1 Retirement Stock]( He’s used this single stock to help thousands of people, from school teachers to doctors, profit right through massive stock market crashes like 2000, 2008, 2020, and 2022! Now, it's your turn. [Click here to discover how to collect 37 YEARS of normal market gains in just 8 days…]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](