My pick: Buy dollar-Canadian dollar Ca$0.9800
Expertise: Technical analysis
Average time frame of trades: 1 to 6 weeks
Daily studies are starting to look a little stretched, and in conjunction with longer-term cyclical studies, warn of a major base. This leaves us looking for opportunities to buy rather than sell 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 the outlook and give reason for pause.
My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I sold euro-dollar last week at $1.3568. The prices are retreating after last week’s upswing as the greenback capitalises on safe-haven demand amid the broadening crisis in Libya. With the pair testing resistance-turned-support at the top of a falling channel established earlier this month (now at $1.3573), I will remain short and look for a break below this juncture. I will do this in the hope that I will clear the way back below the $1.35.
My pick: Short Australian dollar-dollar below $0.9900
Expertise: Fundamental and technical analysis and risk management
Average time frame of trades: 1 day to 1 week
A strong range reversal from dollar-Swiss franc prevented a long breakout trade. However, a jolt in underlying risk appetite may put my previously laid out Australian dollar-dollar short setup into play. A controlled short below $0.9900 with an initial stop and first target of 150 basis points looks better now than last week. Another appealing risk-based setup is to short euro-yen below ¥113.00 with another 150-point buffer on each side.