My pick: Short euro-US dollar
Expertise: System trading
Average time frame of trades: 2-10 weeks
I have been looking for an opportunity to fade the euro-dollar recovery for a while now. After a long downtrend, the euro posted a large correction but I believe that the overall shift lower remains intact. With that in mind, I will go short of the euro at market ($1.2900) or better, placing maximum risk above $1.3200. This is a wide stop, but nonetheless I believe $1.22 and $1.19 are reachable targets.
My pick: Long dollar-Swiss franc above SFr1.06, short cable below $1.5500.
Expertise: Combining fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
Last week was defined by big moves and impressive momentum. There isn’t much in the way of scheduled fundamental event risk to keep risk trends moving, so it is better to let trades come to me rather than forcing one. I still like dollar-Swiss franc in a break above SFr1.06 but a new pair to add is a sterling-dollar short below $1.55 with a stop at $1.5725 and a target of $1.52. However, remember that patience is key with this trade.
My pick: Buy dollar-yen at ¥84
Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months
The market has been under some intense pressure and now looks poised for a fresh wave of declines below the recently-set multi-year lows at ¥84.70. But with technical studies starting to look stretched, we don’t see the drop below ¥84.70 as sustainable and would look to take advantage of any additional weakness as an opportunity to build into a core long position. Cyclical studies are supportive with the market likely to carve a major base.