My pick: Short New Zealand dollar-US dollar, pending market moves
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week-6 months

The New Zealand dollar looks to be carving out a double top below the $0.74. Prices are now testing below the lower boundary of a bearish rising wedge formation set from the lows in June, now at $0.7267. Clear negative divergence on 14-day relative strength studies bolsters the case for a downside scenario. I will look for confirmation on a daily close below this level, eyeing initial targets at $0.6844 and $0.6579.


My pick: Long dollar-Swiss franc above SFr1.06, short euro-aussie dollar.
Expertise: Combining Fundamental and Technical Analysis
Average time frame of trades: 1 day to 1 week

Congestion in the markets dominated trading last week, with very little direction to follow, but we seem to be making the effort for direction this week. The dollar is the big performer so far; and I see euro-dollar and dollar-franc as interchangeable. The latter, perhaps, has a better catalyst with a move above SFr1.06, which would allow for a 125 point stop and a reasonable 200 point first target. Also interesting is a euro-aussie break below A$1.4335, with a stop at A$1.45, targeting A$1.41.


My pick: Buy dollar-yen at ¥84.00
Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months

The dollar has been under some intense pressure against the yen for the last few weeks and is now close to 14-year lows at $84.80. However, with technical studies starting to look stretched, we do not see the drop below $84.80 as being sustainable and would instead look to take advantage of any additional weakness as an opportunity to build into a core long position. Strategy: buy at ¥84.00 for a ¥100.00 objective with a stop at ¥76.00.