How long can the euro's rally last?

John C Burford asks if the euro is likely to resume its bear market, or whether we will see an extension to its recent rally.

Over the weekend, the Spanish banks' bail-out was put in place, and markets overnight have extended last week's gains with huge openings. These dramatic moves have taken several markets to my original targets, including the euro, which I will cover today. I will get to the Dow later this week, as promised.

Recall, on Thursday I had taken a profit on my long trade at the C wave high and taken a new short position:

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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.