My pick: Stay long dollar-yen
Expertise: Global macro
Average time frame of trades: 1 week-6 months

I bought dollar-yen at ¥83.08 in mid-November expecting the pair to rise along with US Treasury yields after the size of the Federal Reserve’s QE matched expectations and opened the door for profit-taking. Prices pulled back to support at the bottom of a rising channel set from November’s swing low and I expect a rebound from here to lead prices up toward my initial target at ¥85.87 as yields march higher. A stop-loss will be activated on a daily close below ¥81.72.


My pick: Short euro against US dollar in the New Year
Expertise: System trading
Average time frame of trades: 2-10 weeks

Limited liquidity in the holiday-shortened week ahead warns of choppy and unpredictable price movements. As such, I will stay flat until traders get back to their screens in the new year. However, one of my top trades for next year remains buying the US dollar – especially against the at-risk euro amid a continued fiscal crisis. Traders should look to January for what promises to be another eventful year for the euro-US dollar currency pair.


My pick: Long euro-Swiss franc at SFr1.2750
Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months

The market has come under some intense pressure since breaking below SFr1.3000 – the latest falls resulted in a drop to record lows below the September bottom of SFr1.2765 . We still retain a longer-term constructive outlook at current levels. With daily studies once again looking oversold, further declines below SFr1.2700 are not expected to be sustained. Look for a break and daily close above SFr1.3000 to help confirm bias and accelerate gains. Target SFr1.4000 with a stop at SFr1.2390.