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

The strong drive in risk trends through the historically quiet holiday period was remarkable. This is a clear sign of how troubled the European and global financial markets are. From a risk perspective, I take this as a sign that New Zealand dollar-dollar’s retest of a very prominent channel bottom near $0.7600 sets new resistance. For more fundamental balance, I like playing the euro-Canadian dollar range (Ca$1.4050-Ca$1.3750) and a genuine dollar-Swiss franc break above SFr0.94.


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

We have been short this market from $1.0550 and $1.0300 over the past couple of weeks and have managed to build up some nice profits. The latest break and close back below parity further solidifies our core bearish outlook, and from here, we will look over the coming weeks for a retest of the critical October lows at $0.9385. The latest rallies should now be well capped below $1.0250 and selling on rallies towards or back above parity is the preferred strategy.


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

As expected, the Eurozone debt crisis continues to spread and more of the same appears likely ahead – aggressive involvement from the ECB to trim bond yields remain absent. Markets are also pricing in a rate cut in December, bolstering the bearish bias. I re-entered short at $1.3526 on 9 November, 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.