The European Union summit generated some results - but not everything investors hoped for. Here's how to trade the euro now.
There was some actual progress on the euro zone debt crisis last Friday - but really, it was "deja vu all over again," says Rebecca Patterson, chief markets strategist for J.P. Morgan Asset Management, Institutional. "They are doing things every single time," she told CNBC's Melissa Lee - especially, this time around, at the European Central Bank. "But getting a new treaty together by March? Good luck." Past treaties took one to two years to get together, she says.
So how do you trade that? "I think as this crisis plays out and the ECB is forced to do more and more, we are going to get a weaker euro," Patterson says, so she wants to sell the euro on strength.
The trick is finding the right entry point in a week that promises to be full of market moving events like FOMC and OPEC meetings - but ultimately, if the euro hits 1.36, Patterson believes that is the moment to sell. She would look for a target of 1.30 or 1.31, and put a stop at 1.3820, on the theory that "you always want to have your stop half of less of the target level."
Todd Gordon, co-head of research and trading at Aspen Trading Group, likes the entry level of the trade on a technical basis. He notes that the euro had a nice move up over a period of seven days, and he thinks it could hit 1.36 before long.
You can watch the whole discussion on the videotape.
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