FOREX ANALYST PICKS

FOREX STRATEGIST
JOHN KICKLIGHTER

My pick: Long dollar-yen and euro-dollar. Short euro-Swiss franc Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week

We are facing huge fundamental themes that could dramatically alter the course of the markets, depending upon developments in the coming weeks. The setups I’m looking at play to specific scenarios. A long euro-dollar on a break above $1.4550 is a dollar-bearish reaction should QE3 be passed. Should that program falter, dollar-yen could finally charge a reversal (athough currently that goes against my risk rules). And, euro-Swiss franc below SFr1.12 is a short-term technical option.

FOREX STRATEGIST
JOEL KRUGER

My pick: Looking to buy dollar-yen
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week

While we are not ready to pull the trigger just yet, we are looking for an opportunity to get long on dollar-yen, especially with the market trading record lows, and showing no downside follow-through on the break to hit fresh lows below ¥76.00 last Friday. This could suggest that the formation of some form of a base is imminent, and we will look for a daily close back above ¥77.30 to confirm these prospects for a bullish reversal.

FOREX STRATEGIST
ILYA SPIVAK

My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months

I sold euro-dollar four weeks ago at $1.4328, expecting escalation in the EU debt crisis, compounded by a downward revision in investors’ expectations of global economic growth. While the focus this week will be on Ben Bernanke’s speech at the Jackson Hole central bankers’ summit, I expect these larger themes to reclaim dominance thereafter and will remain short, initially targeting a close below $1.3975. A stop-loss will be triggered on a daily close above $1.4535.