My pick: Long dollar-Canadian dollar and dollar-Swiss franc.
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
A coordinated liquidity pump by the world’s six largest central banks was enough to trip attractive short-risk setups from last week – but not generate a definitive trend. The risk of a large risk aversion effort is high, but follow through depends on the catalyst. For a risk aversion setup, I like the break of an inverted H&S neckline on dollar-Canadian dollar at Ca$1.02. Getting away from risk trends, Aussie dollar-Kiwi dollar below NZ$1.3050 and dollar-Swiss franc above SFr0.9400 are appealing.
My pick: Looking to Buy euro-Swedish Krona
Expertise: Technical analysis
Average time frame of trades: Multiweek
This market is in the process of carving a major longer-term base. As such, any setbacks should be very well supported on dips into the SKr9.00 area and used as opportunities to establish a very attractive risk/reward long trade. Look for another successful defense ahead of the SKr9.00 handle, with a break and close back above 9.07 to confirm and accelerate gains. A daily close back above SKr9.07 should open an immediate surge to challenge the recent multi-week highs by SKr9.30.
My pick: Remain short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I re-entered short at $1.3526 on 9 November expecting the Eurozone debt crisis to continue to spread, aiming for targets at $1.3141 and $1.2836. The spotlight is now on the EU leaders’ summit, but I am not optimistic considering the Franco-German accord likely to serve as the centrepiece of negotiation is deeply flawed. As such, I will remain short for now. A stop-loss will be triggered on a daily close above $1.3882.