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Where the Euro Goes From Here

Darrell Gulin | Stone | Getty Images

The euro has had a little bounce after its early morning tumble. Here's where one strategist says it's headed next.

After an overnight tumble, the euro has steadied today. Has it hit bottom?

Hardly, says Willie Williams, director of institutional derivative sales at Societe Generale.

"In the near term, a break below 1.20 is definitely possible," he told CNBC's Scott Wapner. "The market was right to fade the first Greek election," and there is nothing significant on the horizon to change the gloomy outlook.

Williams thinks it makes sense to sell the euro at 1.2600 with a stop at 1.2750 and a target of 1.2100.

There are some risks to the trade, he says. For example, "I think there are some concerns that the the ECB or policymakers might come out with some initiative that might cause a spike," especially since so many investors are short the euro.

Still, bearish pressures from factors like Spain's woes and the deteriorating euro zone economy "should still put the euro under pressure," Williams says.

"In the near term I still think the move is lower, and fundamentals are working against the euro."

You can watch the discussion on the video.

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