How to Trade the Euro's Rise

The euro is having a good day against the dollar, but tomorrow may be another story.

The euro is gaining against the dollar today, but can it last?

Unclear, says says Todd Gordon, co-head of research and trading at Aspen Trading Group.

"I think it's actually more of a dollar strength story outside of the euro," he told CNBC's Scott Wapner. Interest rates are helping the greenback, Gordon says, and "the dollar is actually the lesser of many evils now."

So Gordon is on the sidelines, staying away from the euro-dollar pair.

"I really think that with a higher stock market and the interest rate move we've seen in the 10-year yield, it's really preventing us from being short dollar."

But Gordon does want to trade the euro's strength, and he notes that the Australian dollar has been suffering, what with with the Chinese yuan weaker and the concerns about growth in China.

So Gordon is buying the euro against the Aussie. He recommends entering right around 1.1750, setting a stop at 1.1650 and a target at 1.2000.

You can watch the discussion on the video clip, starting at 1:41.

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