DailyFX Tips & Picks: Analyst’s pick

CHIEF STRATEGIST
JOHN KICKLIGHTER

My pick: Euro-dollar below $1.3650, sterling-yen below ¥169.25, long dollar-Loonie
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: One day to one week

Risk trends and relative monetary policy are two themes dominating the foreign exchange trading landscape. The best set-ups should fit both. Euro-dollar is particularly interesting, with a nearly two-year channel floor at $1.3650 and the European Central Bank talking stimulus. Pound sterling has lost momentum in building rate forecasts, which contributes to sterling-yen eyeing its 18-month trendline at ¥169.50. Finally, dollar-Canadian dollar is at the floor of a 2014 channel at Ca$1.0950. A turn would be confirmed above Ca$1.1050.