FOREX ANALYST PICKS

FOREX STRATEGIST
JOHN KICKLIGHTER

My pick: Long Aussie-Kiwi, long dollar-yen
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week

The market finally took notice of the Eurozone’s financial troubles and the result was a sharp euro-dollar drop that easily hit reasonable targets. This pair could certainly do more; but the combination of $1.40-$1.38 zone support and the threat of QE3 could make this a choppy affair. Top setups for now remain dollar-yen above ¥77.50 (a long-term projection requiring fundamentals) and Aussie-Kiwi, should it break above the NZ$1.2700 head-and-shoulders neckline.

FOREX STRATEGIST
JOEL KRUGER

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

Rallies have finally stalled by the upper Bollinger band and the market is in the process of carving a fresh lower top below the $1.1080 post-float record highs, ahead of the next major downside extension back below parity. The next short-term support comes in by $1.0400 and a break below this will help to confirm bias and accelerate declines. Sell at $1.0395, aiming for a $1.0000 objective. A stop-loss will be triggered at $1.0560.

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 in late July at $1.4328 expecting an escalation in the EU debt crisis, compounded by a downward revision in investors’ expectations of global economic growth that sets off risk aversion and drives the dollar on safe-haven demand. These larger themes appear to have reclaimed their dominance over price action, with the euro starting to accelerate lower. Remain short, aiming for a break below $1.40 to expose initial target at $1.3975. Stop-loss on daily close above $1.4535.