The euro is set to plummet toward its lowest level since the single currency appeared on traders' screens back in 1999, Mark Sturdy, director at Seven Days Ahead, told CNBC Wednesday.
AP
Euro bills
The long-term chart for the euro suggests it will go "much lower" versus the dollar and could fall toward $0.90, which is near the lows of 2000/2001, Sturdy said.
That level would be close to the lowest level for the euro since the currency began electronic trading in January 1999.
The euro launched at $1.1665 and then jumped to $1.1889 within four trading sessions. After the initial strength, the currency began a long decline toward the low of $0.8230, hit on October 26 2000. The euro is currently higher that its launch value.
"It is the central, most compelling drama in the markets I think," Sturdy said. "We have what I believe to be a top formation that has completed."
There is a "compelling case for the bears," he added.
- Watch the full interview with Mark Sturdy above.
The original euro zone countries tied themselves into the currency in 1999, but the coins and notes didn't hit people's wallets until January 2002 when they became legal tender. Since then the euro has seen years of relative strength versus the dollar until the financial crisis rocked its stability in 2008.
Dennis Gartman, author of "the Gartman Letter," also thinks the euro will decline against the dollar.
The euro "is having a rough month, it's having a rough year… it's probably going to continue to have rough times ahead. Are we going under $1.20? Almost certainly," he told CNBC.
Meanwhile, the pound's outlook isn't as weak as the euro's versus the dollar, but don't expect it to go much higher either, Sturdy said.
The UK currency is "within a trading range which has been around since 1990," he said.
However, the pound could strengthen against the euro , according to Sturdy.
"Sterling looks to me to be able to strengthen against the euro, certainly down to £0.81. There is no substantial support for the euro until you get down to £0.74 against sterling," he said.
