FOREX ANALYST PICKS

FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Stay short cable from $1.55; long euro-Swissie above SFr1.3150

Expertise: Combining fundamental and technical analysis

Average time frame of trades: 1 day-1 week

My interest in the sterling last week has paid off more with my sterling-Aussie short (having booked profit) than my sterling-dollar short. I will remain short on this major currency pair. In the meantime, event risk this week is light; which means the market could be more conducive to trends. As a risky, short time frame setup, I like a potential head-and-shoulders reversal on euro-Swissie on a move above SFr1.3150 with a stop 100 pips away and a target 200 basis points above.

FOREX STRATEGIST
ILYA SPIVAK
My pick: Remain short euro-US dollar at $1.2660

Expertise: Global macro, classic technical analysis

Average time frame of trades: 1 week-6 months

I sold euro-dollar at $1.2660 on 23 August as prices confirmed the break of a rising trend line set from the low in early June with a push through horizontal support in the $1.2715-$1.2755 congestion region. A shallow recovery has taken rates higher for re-test of $1.29 but I expect the re-emergence of risk aversion in the autumn to boost safety-linked demand for the dollar and will stay short. My initial target remains at $1.2130, with a stop-loss to be activated on a daily close above $1.2925.

FOREX STRATEGIST
JOEL KRUGER
My pick: Sell Aussie-US dollar at US$0.9060

Expertise: Classic technical analysis

Average time frame of trades: 1 week-6 months

The market has been well bid for several months – the latest rally opened yet another move beyond critical psychological barriers near US$0.9000 – but longer-term studies show the price trading near cyclical highs. A closer look at the major moving averages on the daily chart shows them all coiling together to warn of a major move ahead, which we contend will be to the downside. Sell at US$0.9060 with a US$0.8500 target and a stop at US$ 0.9310.