Currency strategists at RBC Capital Markets note that while trading euro it’s very important to choose right time frame.

According to RBC, if the agreement on Greece’s bail out is reached the concerns about the restructuring of the nation’s debt in the short-term will be eliminated and the pair EUR/USD may bounce by 300 pips. As a result, there will be a buying opportunity for short-term investors.

However, many analysts regard some kind of debt restructuring for Greece as inevitable claiming that this will eventually hit euro. So, for longer term investors RBC recommends using euro’s rally as an opportunity to set up longer term EUR shorts.

In addition, as the pair EUR/USD is strongly by the overall shifts in risk sentiment, the analysts say it would be better to trade euro versus a currency such as New Zealand’s dollar that tends to perform similarly in similar risk environments.