FOREX ANALYST PICKS
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Short Aussie dollar-US dollar below $0.9300
Expertise: Combining fundamental and technical analysis
Average time frame of trades: 1 day-1 week
Taking a short sterling-dollar and long euro-dollar position last week offset my risk but the lack of a clear trend is still preventing truly sizeable moves. However, it is in this choppy fundamental situation where we can see unusual developments clearly. At the top of my list is Aussie dollar-US?dollar’s unflappable run. A reversal from new highs exposes a potentially rapid move. I will sell below US$0.93 with a 200 point stop and first target.
FOREX STRATEGIST
ILYA SPIVAK
My pick: Short euro-US dollar pending market moves
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week-6 months
Euro-dollar has put in a bearish shooting star candlestick formation below the $1.31 figure following a retest of support-turned-resistance at a rising trend line established from the swing bottom in early June that was initially broken to the downside on 20 August. This has been followed by a Doji candle, pointing to indecision and falling short of offering enough confirmation to sell the pair. I will look for a daily close below $1.3047 to go short, targeting $1.2643 with a stop to be triggered on a daily close above $1.3163.
FOREX STRATEGIST
JOEL KRUGER
My pick: Buy euro-Aussie dollar at Au$1.4000
Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months
The market is currently at the bottom of a multi-year range base, with the price dropping sharply by well over 30 per cent over the past several months, suggesting that we could be on the verge of a major shift in the structure. While there is no specific evidence just yet for a bullish reversal, daily Relative Strength Index (RSI) studies are trading well below 30 to further reaffirm likelihood of major upside ahead. Target Au$1.50 with a stop at Au$1.35.