X STRATEGIST JOHN KICKLIGHTER
My pick: Stay short cable from $1.55; long euro-dollar above $1.2925
Expertise: Combining fundamental and technical analysis
Average time frame of trades: 1 day-1 week
We have seen lots of volatility this past week; but a clear direction on underlying trends is still eluding us. Short-term setups are what I’m looking under these conditions; but for a weekly time frame, I want to balance the outcome of a potential break. I’ll remain with my short sterling-dollar setup from $1.55. To this, I will look for a confirmed bullish break from euro-dollar above $1.2925 (with a 100 basis point initial target and stop).
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. Prices found interim support at a minor rising trend line set from mid-August, with a sentiment-driven bounce higher taking out a horizontal barrier at $1.2762 on the back of the Basel III announcement and a robust set of Chinese data. The trade remains within established parameters while the drivers behind the advance appear short-lived, hinting it is little more than a correction. I will remain short, targeting $1.2130. A stop-loss will be activated on a daily close above $1.2925.
FOREX STRATEGIST JOEL KRUGER
My pick: Buy dollar-yen at ¥80
Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months A few weeks back we recommended a long position by ¥84. We now recommend exiting this position and standing aside in anticipation of another drop in the pair to retest the critical all-time lows of 1995 at ¥79.75 over the coming days. The markets are very aware of the ¥79.75 level and, more often than not, these levels are tested before any possibility of reversal can occur. Buy at ¥80 with an objective of ¥100 and a stop at ¥74.