Friday 06/12/2012 8.00PM GMT 9.00PM CET

Earlier in the day we looked at the jobs data out of the US which is getting better and we saw the Euro sell off yet again. The Euro is going lower and we would expect a good rally to sell into next week.

The dollar remains firm and were a buyer on dips. Before we look at the news let's take a look at a round up of our positions.

Trade Summary

We are long dollar but on AUD, GBP, CAD, EUR, we banked 50% of our position earlier today and will look to place back in the market next week. We have now banked the other 50% of our pound short position as we are near target of 1.54 and also banked all our dollar Yen position.

AUD: We are short into 1.040 and have a good profit and will look to put our banked profit back in on any rally or break of 1.010 support – this trend is the best on the board in our view in terms of potential and we see it going down to 80.00 in the next few months.

GBP: We banked out 50% of our short trade yesterday and were now at 1.54 our target and we will go flat and look to re enter again on Monday on any bounce.

CAD: We are short into 99.00 and we have come off this level and were now through the mid Bollinger band which sets up a test of the 97.00 level – sell rallies or a break 97.00.

EUR: We have banked 50% of our Euro short trade and see a rally back to 1.28 - 129 as a good selling opportunity on falling momentum with stops behind 1.30. We have been selling the Euro since the move up to 1.42, made a lot of profit and expect more to come.

JYP: We took the bounce up yesterday as the dollar was oversold and as we stalled today we banked our profit and were now flat.

Euro Going Down to 1.20 Sell the Rally

The Euro will probably rally on short covering and the CFTC Net traders report out later today will probably show that Euro short positions are at a record and they will be flushed out soon but the rally will simply be yet another selling opportunity as the Euro targets 1.20 or lower.

The situation in Euro zone is dire and there looks to be no end to the fiscal crisis..

European confidence in the economic fell to its lowest in more than two years and German factory orders plunged. If you think the US is struggling with jobs consider the situation in Euro zone:

Unemployment rate remained at a 13-year high of 10.3 percent in November. Over in Spain, the country recorded the region’s highest unemployment rate at an eye watering 22.9 percent Among young Spaniards the rate is even worse at 49.6 percent.

Luxembourg leader Jean Claude Juncker said this week that the EU is on the brink of a recession of unknown scope. Well let's just say its going to the worst since the 1930s and if the fiscal crisis sees a country like Spain or Italy go down, it could trigger a global recession.

Euro zone is doomed and won't survive in its current form and its just a question of when it breaks up or collapses. There is no central leadership or policies which inspire confidence. Debts are out of control and people in many countries will soon want to leave and reject the austerity measures being forced upon them.

In the meantime confidence in the currency will remain low, interest rates are falling and the ECB printing money to give the banks cheap loans,  is Quantitative easing in all but name and printing money, means a lower currency by default.

It will be a Euro going down, with short sharp rallies along the way until the inevitable slimming down of the zone or a break up – Continue to hold shorts and sell the rallies.

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