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Euro Nears a Breaking Point

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The British pound and the yen have been grabbing the headlines lately, thanks to their rapid declines, but it may be time to look elsewhere for selling opportunities.

Andrew Busch, publisher of andrewbusch.com, is on the prowl, and he has a selling candidate in mind.

The euro "looks like Gilligan to the skipper of the dollar," he told CNBC's Simon Hobbs. "We're getting close to a really big level here," he adds, pointing to the euro's 200-day moving average of 1.2865. "If we blow through there, we're going to keep going at least another 200 points."

Busch says that while the yen and pound have had major drops, "I think we've run about as far as we're going to go in dollar-yen." Now, he says, "I think the euro's about to catch up to these currencies," and predicts that the euro-yen pair will come under pressure.

He also likes selling the euro against the dollar on rallies. In particular, Busch recommends selling the euro against the dollar at 1.3050, setting a stop at 1.3150 and a target of 1.2650. Also, he says, "look to double this short if we get below 1.2865."

Busch is eagerly awaiting the results of the Italian parliament's March 15 attempt to once again form a new government. He it to be unsuccessful, and adds, "the dollar looks pretty good right now."

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