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How to Trade the Euro After the Summit

The euro got quite a lift from the European Union summit, but this strategist says the party's over.

When European Union leaders announced actual progress at their summit last week, the euro went on a joyride. But don't expect the fun to last, says Willie Williams, director of institutional derivative sales at Societe Generale. "What we are seeing today," with the euro's pullback, "is there are still a lot of conditions that need to be met before these programs go into place, so I think the sentiment has changed but we have not seen any game-changing outcomes from the summit," he says.

It's not as if the upcoming European Central Bank meeting will help matters, either.

"I think the ECB is going to cut rates, and I think we will continue to see the euro under pressure," Williams told CNBC's Melissa Lee. "Sentiment going into the meeting on Friday was so low, the market was due for a rebound," but today's retrenchment is a harbinger of what's really ahead.

Plenty of investors think an easing move by the European Central Bank could cheer investors hoping for action to get the euro zone economy moving again. But Williams says it's not that simple. "I like selling euro dollar at 1.2600 with a stop-loss at 1.2800 and with a target towards 1.2200," he says.

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