FOREX ANALYST PICKS

CURRENCY STRATEGIST
ILYA SPIVAK
My pick: Short euro-US dollar (pending market movement)

Expertise: Global macro, classic technical analysis

Average time frame of trades: 1 week-6 months

Euro-dollar rallied after confirming an inverse head and shoulders in early July. Prices are poised to challenge resistance at $1.3266, the 76.4 per cent Fibonacci retracement of the 12 April-7June downswing as well as the upside target implied by measuring the distance between the head and neckline of the head and shoulders. I am bearish and I look for the upswing to yield an attractive selling opportunity.

FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Short euro-dollar below $1.30 / stay long euro-yen from ¥113.50

Expertise: Fundamental and technical analysis with risk management

Average time frame of trades: 1 day-1 week

The most attractive currency pairs this week are euro-US dollar and sterling-US dollar but their runs are already mature in my opinion. My euro-yen long setup from last week is underway from ¥113.50 with a stop at ¥111.15 but the follow through has yet to take up. As an offset to the euro’s questionable health, I am also looking for a potential euro-dollar reversal. A short below $1.30 with a 150 point stop and 250 point first target should do.

FOREX STRATEGIST
JOEL KRUGER
My pick: Stay short New Zealand dollar-US dollar at $0.7350

Expertise: Classic technical analysis

Average time frame of trades: 1 week-6 months

Despite the latest surge, the market shows formidable resistance on rallies above $0.7300 and we still like the idea of fading any rallies beyond this psychological barrier. Longer-term technicals confirm the bearish bias, with the market likely to roll over in favour of some deeper setbacks towards $0.6500. A weekly close below $0.7250 should accelerate declines towards initial support at $0.7000, below which lies our $0.6500 objective. Place a stop at $0.7775.