My pick: Buy US dollar/Canadian dollar at Ca$1.0090
Expertise: Technical analysis
Average time frame of trades: 1 month-3 months
Setbacks have been well supported by parity, and the market finally looks like it could be in the process of carving out yet another base. A break and close back above Ca$1.0100 will confirm a double bottom that should accelerate gains well above Ca$1.0200 and then put the focus on some more critical resistance at Ca$1.0675. Ultimately, only a close back below Ca$0.9970 would give reason for concern. Target Ca$1.0600 and put a stop at Ca$0.9890.
My pick: Stay long dollar-yen from ¥82/short Aussie-Loonie below Ca$0.99
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day-1 week
My long dollar-yen setup was triggered with the range break above ¥82 and subsequent channel break at ¥82.65. Though I question the risk reaction that further Ireland/European troubles could draw, I will keep the stop at ¥81.40 and first target equidistant. Trying to avoid the volatile influences of risk appetite somewhat, a potential Aussie-Canadian dollar break below Ca$0.99 could complete a nice reversal pattern and encourage a short with a 100 point stop and first target.
My pick: Long dollar-yen at ¥83.08
Expertise: Global macro
Average time frame of trades: 1 week-6 months
Dollar-yen has cleared resistance at the top of a falling channel that guided the pair down since early May. A bullish Three Inside Up candlestick pattern on the weekly chart reinforces the case for an upside scenario. A correction in the US-Japan two-year bond yield spread – a major driver of dollar-yen in recent months – following the Fed’s QE2 announcement is the fundamental catalyst. I will go long, targeting ¥85.87. A stop-loss will be activated on a daily close below ¥81.72.