My pick: Long euro-Aussie dollar at AU$1.3700
Expertise: Technical analysis
Average time frame of trades: 1 month-12 months
We are already long sterling-kiwi from the previous week (long at NZ$2.0500), and we have just established a fresh long on this correlated cross which trades near multi-year lows. The monthly relative strength index is sitting well below 30 at 25. We like the idea of establishing the counter-trend position at current levels, particularly given the latest dovish remarks from the Reserve Bank of Australia’s governor Glenn Stevens. Target AU$1.6000 with a stop at AU$ 1.2900.
My pick: Sell Kiwi-dollar, stay long dollar-yen and sell Aussie-Loonie
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day-1 week
Despite liquidity issues last week, we were still seeing trends develop. Many setups were too risky to set up beforehand or are too late to jump into now. That said, I am going to stick with my dollar-yen long from ¥82 with a loose objective now at ¥85 and short Aussie dollar-Canadian dollar from Ca$0.99 (with a stop 100 points away and a target of 200 points). New to the mix, a possible Kiwi-dollar break below US$0.74 with a 150 points stop and first target.
My pick: Stay long dollar-yen, short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week-6 months
I entered long dollar-yen at ¥83.08 and short euro-dollar at $1.3762 two weeks ago, looking for profit-taking on QE2-linked positions. Debt woes in the Eurozone, Korean sabre-rattling and Chinese tightening have given risk aversion an added push. I have revised my stop to break-even on the euro trade, looking for a move below $1.30 from here. The yen trade parameters remain unchanged, with a soft target at ¥85.87 and a stop on a daily close below ¥81.72.