The euro could soon hit a new low: Trader

The euro continued its decline Tuesday, falling to its lowest level since late April as investors anticipate further easing from the European Central Bank as well as a Federal Reserve rate hike next month. The common currency is now down more than 6 percent in the past month, and according to one technician, a retest of the euro's 2015 low could soon be in the cards.

"The euro is in a significant decline and I think that trend will continue," Todd Gordon said Tuesday on CNBC's "Trading Nation." The euro has fallen sharply against the backdrop of a strong dollar the last two years, down more than 21 percent.

Read MoreDollar adds to gains vs euro, index near 7-month high

According to Gordon, as uncertainty over the state of the euro zone's economy continues to rise, so does the possibility of more stimulus. Which, coupled with what could be the first U.S. interest rate hike in more than nine years, will point to a lower euro. "The divergent monetary policy will lead to U.S. dollar strength and euro weakness," he said.

From a technical standpoint, the TradingAnalysis.com founder said the euro chart is vulnerable. "If you draw a support line connecting the lows in 2015, you can see that is now broken," he said. Gordon noted that the prior support should serve as resistance going forward, which will continue to put pressure on the currency. "It looks like the euro should continue to the downside."

Read MoreFed will not be deterred from hiking rates

Gordon eyed the euro's March 2015 low of $1.046 as the next level of support. Roughly 2 percent lower than its current price of $1.064.

Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com

Videos

Trades to Watch

Trader Bios

About

Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more

Connect