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How to Trade the Euro Now

Euro bills and coins
AP
Euro bills and coins

The euro has been consolidating recent gains, and this strategist sees a trading opportunity.

It's been a busy week in Europe, but you wouldn't know it from the euro today.

"The euro isn't really doing anything," says MacNeil Curry, head of FX rates and technical currency strategy at Bank of America Merrill Lynch. "It hasn't broken any kind of support in a meaningful way."

That's not a good sign, Curry told CNBC's Scott Wapner.

"We've had pretty good price action in European fixed income today, specifically from the peripheral countries," he says, and that should have lifted the single currency.

"The fact that it isn't advancing against the dollar when a lot of other currencies are, I think you want to look at that to be a bit of an underperformer."

In contrast, the British pound has been moving higher against the dollar, Curry says.

So Curry wants to sell the euro against the British pound. He would enter the trade at 0.8400 with a stop at 0.8500 and a target of 0.8125.

You can watch the discussion on the video.

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