What is that on the fire? That is the sound and smell of the perma-bulls getting roasted. For the past few months we have had an ever increasing crescendo of the US Dollar being on its last leg. As ever, the currency is (always) about to keel over and die. For what? Why for the illustrious Gold market, of course.

It never fails. The more shrill the cries, the more strength the US Dollar garners...in fact it feeds off these torrents of Dollar bearishness. Now, the bottom of the channel is gone (see previous article) and Gold is in 'free fall'. Without a dent in the US Dollar, Gold will be hard-pressed to rally. The chart paints the damage report.

So, first lesson? Never marry the trade. Know when you are going to cut. Second lesson? Be a contrarian, when the smoke clears. Has it cleared yet? We doubt it. The Euro is bouncing like the deadest of dead cats.

This looks like death's doorstep. Really. The Euro hasn't had a rally worthy of the name in years.

We are getting to the stage where the next move for the Euro could be so low it might come with an '8' handle.

That should focus the mind for the "Dollar is Finished" crowd.

The trading world knows that they are going to ride this one into the sunset. And Europe's sunset is fast approaching.