This chart for the EUR/USD exchange rate and trend shows a 20 year history. Since the Euro exists only for about 10 years we had to make some calculations. You will see later below. 20 years provides a unique historic perspective.

Trends in currency exchange rates are important for investors who invest outside their home currency zone. A foreign stock market index could move up but the currency for that market could devalue compared to your home currency. In that case, your gains measured in your home currency would reduce or could even turn negative.

FOREX movements can have a large impact on the returns of a trend investor

We have applied the Stock Trend Investing approach to recognize trends in major stock market indices now also on a few major currency exchange rates. To get a better understanding of this, please read our free Trend Signals guide.

Trend Trading

We would not recommend using our EUR/USD Exchange Rate History and Trend Chart for pure forex trading. These charts are a high level tool to show the current trend in the exchange rates. Historically, exchange rate trends change much more abrupt than trends in stock markets and these changes can be rather large immediate after a turn in the trend.

But when making your decisions on in which part of the world to invest, it is important to be aware of the current trends in the exchange rates.

20 Year EUR/USD Exchange Rate

The charts are based upon the monthly average exchange rate (ask price) for each month.

So, what have we done to be able to give a 20 year historic perspective for the EUR/USD exchange rate? Simple. We have calculated for the first 10 years a hypothetical EUR/USD exchange based on the actual DEM/USD (Deutsche Mark) exchange rate and the DEM/EUR exchange rate at the moment the DEM was replaced by the EUR.

With the Deutsche Mark being the strongest European currency that went up in the Euro, we believe this is a valid approach to be able to give a unique historic perspective on the EUR/USD exchange rate. We haven’t seen so many other places where you can see how exchange rates have developed for a period of 20 years.

Claim your 100% risk-free trial-membership and get immediate access to the 20-year exchange rate history charts with our trend indications for the other currencies together with our monthly updated trend indications for more than a dozen major stock market indices around the world.

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