With the euro below its longtime trading range, this strategist thinks more weakness is in store.
Whatever the cause, the euro today is below its longtime trading range, and it looks primed to keep moving lower.
"The bottom line is, no growth means no future for the euro zone," says Andrew Busch, global currency and public policy strategist for BMO Capital. "There just isn't a path for growth, and it's getting worse."
Investors have large short positions on the euro right now, which suggests that the currency could bounce on a bit of good news or positive commentary. For Busch, though, that bounce would just create a selling opportunity.
"We've been through this many, many times. We've seen bounces before," he told CNBC's Simon Hobbs. "I think we'll continue to grind down here."
Busch wants to wait for such a bounce, and then sell the euro against the dollar at 1.2975, setting a stop at 1.3025 and a target at 1.2875.
For traders who don't want to wait, Busch suggests entering the trade at current levels, then setting a stop 100 points higher, above where the euro broke out of its range, "and look for 300 points on the downside."
You can watch the discussion on the video.
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