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.
