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The Euro's Infection Problem, and How to Trade It

The euro's having a bad day, and this strategist says its problems are starting to bother the neighbors.

MacNeil Curry is watching the euro today, and he doesn't like what he sees.

"It's pretty clear you are going to see the euro continue to depreciate over the next several weeks and arguably over the medium term as well," says Curry, head of foreign exchange and rates and technical strategist at Bank of America Merrill Lynch.

Curry told CNBC's Scott Wapner that he thinks the euro could hit 1.2510 or so in the near term, "but over the medium term, especially as the year progresses, we think we could ultimately see this thing trade down to the 1.12, 1.08 zone," thanks to both fundamental issues and technical patterns.

The euro's problems are also weighing on the British pound, Curry says.

Cable, or the pound-dollar pair, has been trading in a range for months, but it is starting to head down, and "if this thing starts to break, it could really accelerate to the downside," he says.

Curry believes the pound could ultimately weaken to 1.38, but for now he suggests getting short at around 1.53 with a stop at 1.5425 and a target of 1.4250. "The U.K. has got its own problems," he says. "The fact that it's getting dragged into the euro orbit is not much of a surprise."

Check out the discussion on the video, starting at 6:08.

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