It’ll be an explosive weekend for the euro – but my outlook is bullish

Most people believe 'Grexit' would be bearish for the euro. John C Burford disagrees, and looks to the charts for clues.

In the USA, markets are closed today for Independence Day celebrations. The occasion is observed every year with lavish fireworks displays all over the nation. And by an exquisite coincidence, the Greek referendum this weekend promises its own brand of fireworks in the eurozone.

All eyes will be on the result of this particular vote, and most market observers expect a violent reaction either way when markets open on Sunday night. This weekend, there will be explosive displays globally.

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CONTRACTS OF €125,000Open interest: 345,427
Commitments
67,867167,1735,022233,162101,253306,051273,44839,37671,979
Changes from 16/06/15 (Change in open interest: -4,718)
-14,847-4,8985317,350-1,588-6,966-5,955-2,248-1,237
Percent of open interest for each category of traders
19.648.41.567.529.388.679.211.420.8
Number of traders in each category (Total traders: 238)
6187305262127166Row 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.