When will the euro rally?

The euro has been crushed beneath the weight of bearish sentiment following the Cypriot banking crisis. Is the market due a change of direction? John C Burford consults the charts.

On Monday, I noted that because of worries over the integrity of the eurozone, the euro weakened to the crucial Fibonacci 50% level. This was the daily chart then:

13-3-18-MWT-3

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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.