Forget the eurozone noise and trust your trading signals

Many traders have a dogmatic view of the markets, not least the euro. John C Burford explains why that's a big mistake.

Currency markets have a habit of moving beyond our best (or worst) expectations, despite our best efforts at pinpointing trend changes. Who would have guessed last year that the US dollar would zoom higher to appreciate by over 20% in just a few months to reach the 100 print?

The EUR/USD moved from 1.40 in May last year to the recent low at 1.05 a decline of 25% in a relentless liquidation of long positions by the army of dollar bears. But in May at the dollar low, it was doomed according to received wisdom.

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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.