Watch out for EUR/USD strength at year-end [Video]

Giles Coghlan LLB, Lth, MA Financial Source

One of the marked seasonal patterns around year-end in the currency space is that the dollar tends to fall. The weakness in the dollar causes a marked strength in EURUSD. So, watch out for any EURUSD strength starting from around December 20. Look at the strong seasonal pattern here.

Over the last 15 years, the EURUSD has risen between Dec 21 and Dec 30. The largest gain has been +1.55% in 2007 and the largest loss was -0.74% in 2011. The percentage of winning trades has been 68.18%. The annualized return is 35.95%.

Major Trade Risks: The main risk to this seasonal pattern would be if omicron variant fears result in strong risk-off trading which could send the USD sharply higher on possible dollar risk-off flows.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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