Was Thursday 'D-Day' for the euro?

News from the European Central Bank produced a surge in the market. John C Burford plots the euro's likely course in the charts.

The dollar has been in rally mode for the last few weeks, putting pressure on the EUR/USD. My last post on the euro was over two months ago and during that time, the EUR/USD has managed to carry to the 1.40 level that's a Fibonacci 50% retrace of the big move from the 2008 high and the most recent 2010 low.

But when it hit the 1.40 level, it hit a brick wall, and it has been straight down since then until last week.

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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.