The euro follows my market roadmap

Using his chart-trading methods, John C Burford draws his roadmap for the euro, while managing the risks should the market run off course.

On Friday, I outlined the many reasons why I expected a significant high in the EUR/USD at the 1.38 level. It could even turn out to be a major high, which may not be breached for a long time. We shall see.

It is interesting to examine the psychology behind a rally at that level. This has to be done in the absence of updated COT (commitment of traders) data, which are still unavailable many days after government officials have returned to work.

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(Contracts of EUR 125,000)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 278,139
Commitments
137,06164,6275,76382,406153,006225,230223,39652,90954,743
Changes from 10/15/13 (Change in open interest: 20,940)
15,7343,674-279-2,07114,17113,38417,5667,5563,374
Percent of open interest for each category of traders
49.323.22.129.655.081.080.319.019.7
Number of traders in each category (Total traders: 196)
6056184852121113Row 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.