If the 104 level on the EUR/USD pair does not hold, “there is almost nothing in the way to the 85-86 level. That is the lowest support level from the last 2 decades. We are not saying that the Euro will fall, with certainty, to 86 points,” reports ETF Daily News.
Euro weakness would benefit the ProShares UltraShort Euro (NYSEArca: EUO). Underscoring the euro’s prominence on the global currency stage and investors’ willingness to bet on weakness for the currency, EUO is one of the largest currency ETFs trading in the U.S. Another idea for euro bears to consider is the VanEck Vectors Double Short Euro ETN (NYSEArca: DRR).
“It is a bit too early to say what exactly will happen, but given the very strong dollar setup, the not so constructive setup of the Euro, and the money creation machine in the European HQ of the ECB, we believe there is a very fair chance that the Euro will break down in 2017,” adds ETF Daily News.
For more information on hedged options, visit our currency hedged ETFs category.