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How to Trade a Range Bound Euro

Euro coin in front of the giant symbol of the Euro outside the headquarters of the European Central Bank.
Thomas Lohnes | AFP | Getty Images
Euro coin in front of the giant symbol of the Euro outside the headquarters of the European Central Bank.

Amid all the European turmoil, the euro has been trading in a range, but this strategist expects that to change.

Despite dismal sovereign debt auctions, bank downgrades, bailout requests, and dire forecasts, the euro has managed to maintain in a range against the dollar.

Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank, thinks that's about to change, and she has a plan.

Bourdeau notes that the euro is near the bottom of its recent range between 1.2450 and 1.2750, but says that "I just can't bring myself to buy it. I just don't want to be long euro into this EU leaders' summit Thursday and Friday."

Bourdeau thinks the news "will be frustrating" out of the European Union summit - certainly the forecasts ahead of time are glum - and she is expecting the euro to make a break to the downside.

She told CNBC's Melissa Leeshe wants to sell the euro on a break to 1.2440, setting a target of 1.2000 and a stop at 1.2580.

You can watch the discussion on the video clip.

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