How to Play a Rising Euro
How about that euro, huh?
Both the common currency and the yen have had huge moves in recent months - but while the yen's slide seems to have slowed, the euro is still grinding higher. Consumer sentiment in the euro zone can diverge and retail sales can fall off in Spain, but the euro keeps chugging along.
Andrew Busch, publisher of AndrewBusch.com, wants to keep riding that trend.
"What I like to do as a trader is let the market tell me what to do," he told CNBC Tuesday. "Because the politicians in Europe, and specifically the central bank says it's OK for the euro to strengthen, let's go with that."
For investors who are long the yen, the central bank's hands-off approach is already good news. For those looking to get into a trade, Busch recommends focusing on momentum.
He wants to wait until the euro breaks through 1.3510 against the dollar, and then enter the trade with a stop at 1.3475 and a target of 1.3610.
Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.
Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class.
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