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Strategist: Dollar Strength Ahead

Kiyoshi Ota | Bloomberg | Getty Images

Brace yourself - the Federal Reserve minutes are coming.

The latest behind-the-scenes report from the most recent Fed meeting could provide clues to whether quantitative easing could come to an early end, and traders will be reading closely.

(Read more: CNBC Explains: Quantitative Easing)

MacNeil Curry, head of FX and rates technical strategy at Bank of America Merrill Lynch, says the upshot is likely to be more dollar strength.

"I think the general trend for the dollar is going to be one for continued appreciation. It depends on the currency pair, but if you look at the big currencies, euro and yen, we should see continued dollar strength," he told CNBC's Simon Hobbs.

Curry expects the dollar to continue rising against the yen "because of the Fed minutes and just a general trend for a higher dollar-yen."

He is also anticipating dollar strength against the euro, for two key reasons. "The Fed could drive euro-dollar lower in the very near term," if people think quantitative easing really will end sooner than anticipated, he said. Also, "if you look at European risk markets, peripheral debt, European equity indexes, both of those are taking a pretty decent turn for the worse."

So Curry recommends selling the euro against the dollar. He wants to enter the trade at 1.3400, setting a stop at 1.3530, above the recent high, and a target of 1.3100.

His bottom line: "Dollar strength should be with us beyond just this afternoon, because if you look at least the euro zone, euro zone risk assets are taking a turn for the worse."

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.

Talk back: Tell us what you want to hear about - email us at moneyinmotion@cnbc.com.

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