The ultimate contrarian trade to kick off 2012

With so many bears circling the beleaguered euro, is the single currency preparing a devastating comeback? John C Burford looks to the charts for clues.

In the first of my emails of the new year, I have decided to cover the EUR/USD.

This market is in the cross-hairs of most people and many traders have already pulled the trigger. As my colleague, John Stepek, remarked yesterday, bearishness is rampant on the outlook for the single currency.

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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.