My pick: Sell rallies and stay short euro-dollar
Expertise: System trading
Average time frame of trades: 2-10 weeks
The euro-dollar has made a significant turn, and it’s one that I’ve long been waiting for. Our contrarian sentiment indicator shows that the crowds are at their least bearish on euro-dollar, giving the signal that we should be going short. My near-term target is a break of $1.3400 and possible test of the $1.3200 level. But I do think the general trend favors a fresh test of $1.3000 in the coming weeks.
My pick: Short Aussie-dollar and long dollar-Swiss franc
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day-1 week
My dollar-yen long from last week had to take early profit while euro-New Zealand dollar never triggered. This week, I’m seeing remarkable potential with the dollar. A risk reversal on Australian dollar-dollar is overdue, and I’ll look for a short below $0.9900 with an initial 150 point first target and stop. Dollar-Swiss franc is risk neutral; but it has its own breakout opportunity above SFr.9775 with a 100-point buffer on each side.
My pick: Buy dollar-Canadian dollar at Ca$0.9800
Expertise: Technical analysis
Average time frame of trades: 1 week-6 months
Daily studies are starting to look a little stretched, and this in conjunction with longer-term cyclical studies which warn of a major base, leave us looking for opportunities to buy rather then selling into the downtrend. The Ca$0.9800 figure seems to be offering itself as a formidable support zone and ultimately, only a weekly close back below Ca$0.9800 would delay outlook and give reason for pause.