We talked about the relationship between Bitcoin and EURUSD already back in 2022, when we mentioned and highlighted strong support on both of them. The only difference was that EURUSD was still bearish, looking for the strong support, while Bitcoin was still bullish, it was making just a higher degree correction.

btcusdvseur2022

BTCUSD vs. EURUSD Weekly Chart From July 2022

As you can see today after two years, EURUSD bounced and recovered from the lows, while Bitcoin resumed its bullish trend. And, if we consider that EURUSD is pointing even higher after current consolidation, then Bitcoin could easily extend its rally.

btcusdvceur2024

BTCUSD vs. EURUSD Weekly Chart From August 2024

In conclusion, it’s important to note that the primary reason for the potential rise of the euro and other correlated currencies is the ongoing expectation of a further decline in the U.S. dollar. This is particularly evident when analyzing the Dow Jones FXCM Dollar Index, an equally weighted index that provides a more balanced perspective. Unlike the traditional DXY, which places excessive weight on the euro, the Dow Jones FXCM Dollar Index offers a broader and more accurate view of the dollar’s performance.

dxyddd

USDOLLAR Daily Chart


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