Combining Fibonacci and Elliot waves in the euro

With so many traders piling into long positions on the euro, it's little wonder the market capsized, says John C Burford. Here, he uses two essential charting methods to set his next target.

The euro is crying out for coverage, since it has been rallying into major target areas recently.

On 25 January, I noted that the market had reached the important 50% Fibonacci level(see chart below).

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OPEN INTEREST: 237,856
COMMITMENTS
93,79166,3194,66881,422116,865179,881187,85257,97550,004
CHANGES FROM01/22/13 (CHANGE IN OPEN INTEREST: 21,797)
9,9513,8608616,71414,50917,52619,2304,2712,567
PERCENT OF OPEN INTEREST FOR EACH CATEGORY OF TRADERS
39.427.92.034.249.175.679.024.421.0
NUMBER OF TRADERS IN EACH CATEGORY (TOTAL TRADERS: 178)
5751194447108110Row 8 - Cell 7 Row 8 - Cell 8

John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.