FOREX ANALYST PICKS

FOREX STRATEGIST
JOHN KICKLIGHTER

My pick: Short sterling-dollar; long dollar-yen; short euro-yen
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week

The short setup for dollar-yen below ¥78 from last week worked well enough, but follow through will be troublesome. Now, I’m looking for an intervention reaction should officials allow price to reach ¥76. In the meantime, I’m still interested in the possibility of a cable break below $1.5850 (lowered from last week’s $1.59). On similar technical and fundamental terms, euro-yen could be a good short on a break below ¥105 should risk sell off.

FOREX STRATEGIST
JOEL KRUGER

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

We continue to classify the latest market rally as corrective, with the move putting in a lower top below the September high. The market is now rolling back over to keep the downtrend intact and open a bearish resumption. Look for the latest break below $1.0315 to now expose a fresh drop back towards $0.9385 further down. Back under parity should confirm and accelerate declines. Ultimately, only a sustained break back above $1.0500 negates.

FOREX STRATEGIST
ILYA SPIVAK

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

The restart of interest rate cuts and the spread of sovereign debt woes to Italy – a country almost certainly too big to be bailed out – suggest that the euro-dollar down trend, temporarily interrupted in early October, is ready to resume. I have re-entered short at €1.3526, as prices completed a bearish head and shoulders chart formation, aiming for targets at €1.3141 and €1.2836. A stop-loss will be triggered on a daily close above €1.3882.