The dollar plunged Wednesday, falling 3 percent against the euro, after the Federal Reserve signaled it could begin raising interest rates as early as June but slashed rate projections and downgraded its outlook for the economy. However, don't expect the euro-dollar trade to "keep ripping," widely followed investor Dennis Gartman told CNBC on Wednesday.
He predicted the euro won't go above $1.10 or $1.11.
"There are so many problems in Europe that are incumbent upon keeping the euro under pressure," the editor and publisher of The Gartman Letter said in an interview with "Closing Bell."
"This was an overwrought, overextended one-sided trade. People are getting taken out of their position but the long-term trend is still towards a weaker euro. Strength is to be sold."
Read MoreDollar hammered amid Fed; euro at $1.10
In fact, in his newsletter Wednesday morning before the Fed's statement, Gartman said if the euro got to $1.0875-$1.0925, he'd start thinking about selling.
The euro surged above $1.10 after the statement. The common currency's one-day gain against the dollar was its largest since March 2009. It had dropped below $1.05 for the first time in 12 years earlier this month.
Gartman called the swift moves "amazing."
"I've been trading foreign exchange for 45 years, and other than the …weekend after the Plaza Accord, I cannot recall a day when we saw that many big figures go flying by."
The 1985 Plaza Accord was an agreement between the G-5 nations to depreciate the U.S. dollar against the German mark and the Japanese yen.
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—Reuters contributed to this story.