FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Buy dollar-Swiss franc at SFr0.9885
Expertise: Classic technical analysis
Average time frame of trades: 1 week-6 months
Setbacks have finally stalled out ahead of the critical record lows from 2008 by SFr0.9645, with the market finding a bottom in the SFr0.9700s ahead of the latest minor bounce. Short-term and medium-term studies are looking quite stretched and longer-term cyclical studies warn of a major bottom. This sets up the potential for a reversal, with a break and close back above SFr0.9880 to confirm bias and accelerate gains. Buy at SFr0.9885 with an objective of SFr1.0500 and a stop at SFr0.9585.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Pending market moves, long euro-yen above ¥114.25
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day to 1 week
With a time frame of only a week, we don’t have the opportunity to position for larger reversals and have to instead position ourselves counter to fundamental developments. This is not a position I like to be in. Euro-yen could be a pair that is well positioned regardless. Under constant threat of Bank of Japan intervention and an upcoming EU debt rollover, I will be looking for a close above ¥114.25 for entry with a 150 point stop and first target.
FOREX STRATEGIST
ILYA SPIVAK
My pick: Short euro-dollar pending the market
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week-6 months
Euro-dollar ended last week just below major resistance at $1.3510, the 50 per cent Fibonacci retracement of the Nov to June fall. Prices put in a shooting star candlestick pattern, hinting a reversal is ahead. Negative RSI divergence bolsters the case for a downside scenario. I will enter short following confirmation on a daily close below $1.34 on the current candle, which would give a bearish evening star candlestick as well as the bottom of a rising channel set from the start of September.