How to Trade the Euro's Relief Rally

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This strategist has urged euro selling for the last two weeks, but for now he says the winds are shifting.

For a change, the euro is having a good day, and Andrew Busch, global currency and public policy strategist at BMO Capital Markets, wants to ride the wave.

"I want to give this a shot," he told CNBC. "The market for risk is overbought. However you want to look at it, we're seeing a nice relief rally."

Busch says that when the weathered the news that the European Central Bank was leaving interest rates on hold, that was a signal that things might be shifting in the short term.

He wants to buy the euro against the dollar at 1.2475 with a stop at 1.2425 and a target of 1.2625.

"It's way too soon to say this is over, everybody buy in," he warns. But for now, Busch says, it's time to look for a euro rise.

You can watch the discussion on this video.

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