Wait for a bounce, sell the euro, make money. Repeat.

That will be 2012 in a nutshell.

In the past two days, EUR has hit long-term lows against JPY, USD, GBP and a record low versus AUD. It’s a technical disaster.

The year ahead will be one crisis after another in Europe:

  • The economy will contract.
  • Greece is hopeless.
  • The ECB will resort to increasingly risky, dovish moves.
  • Today’s deficit numbers from Spain perfectly demonstrate the futility of austerity.

Any bounce of approx. 200 pips — on any cross (ex CHF) — is large enough to sell.

Whatever your trade, have a Happy New Year.