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

With France and Germany promising a “no holds barred” solution to Europe’s deepening crisis, my euro-dollar short is under extraordinary pressure. So while we haven’t closed above the stop at $1.3650, it is best to bail out. Now I’m looking at pairs that play to the market’s skepticism. I am already short euro-sterling – with a 60 pip stop and 92 pip target – but I’m also looking for a long sterling-dollar close above $1.5700 and euro-Canadian dollar to close below Ca$1.3800.


My pick: Short Kiwi dollar-dollar
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week

Any rallies are classified as corrective, with the market still locked within a well defined downtrend. As such, we would expect to see the current bounce well capped below $0.8000 on a daily close basis in favour of the next major downside extension back towards and eventually below $0.7465. Ultimately, only a daily close back above $0.8000 would delay outlook and give reason for pause. Strategy: sell at $0.7900 for a $0.7500 objective. Stop on daily close above $0.8000.


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

I sold euro-dollar at $1.4328 on 29 July, expecting a deepening EU debt crisis to hurt the euro. The single currency rebounded after France and Germany pledged to have a definitive plan to alleviate the crisis in place by the 3 November G20 summit, but I remain sceptical. Indeed, many deadlines have come and gone with little to show for them. I will continue holding short, looking at the upswing as a chance to add to my position.