FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Buy euro-Swiss franc at SFr1.3415
Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months
The cross has been under intense pressure for several months, breaking to fresh record lows of SFr1.3070 ahead of the latest bounce. While the trend remains bearish, we have adopted a constructive outlook with the market appearing ready to carve out a base. We have seen some good follow-through on the trade that we issued last week and we see opportunity to still get involved for a push towards our objective of SFr 1.4115. Place a stop at SFr1.3065.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Long euro-yen above ¥113.50, short Aussie-Loonie below Ca$0.91
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day-1 week
While I like the concept of a sterling-dollar and euro-dollar reversal, we are too far away from the entry point to consider them as active opportunities. Given the Eurozone stress test results due on Friday, I am looking at a potential euro-yen break above ¥113.50 with a stop at ¥111.15 and with a target of ¥117 only if it develops before Wednesday or after the report. Going short Aussie dollar-Canadian dollar (with a stop at Ca$0.92 and a target of Ca$0.89) tries to balance risk trends.
FOREX STRATEGIST
ILYA SPIVAK
My pick: Long US dollar-Japanese yen (pending market movement)
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week-6 months
Dollar-yen has put in an inverted hammer candlestick at a support level marked by the bottom of a downward-sloping channel that has confined price action since early May. Positive relative strength index (RSI) divergence hints that the next move may favour the upside. I will look for confirmation on the daily close to assess positioning for a signal to enter long in line with our fundamental outlook, which calls for a long-term advance in line with rising Treasury yields as the US funds its budget deficit.