Just like you would buy undervalued stocks, so, too, can you buy undervalued currencies, said Jalinoos.
The first place to start is by looking at a country's current account deficit—the different between what a country imports versus exports. If the deficit is large, it could be that the currency has become uncompetitive, which would then suggest that it may be overvalued and will fall, said Jalinoos.
He also looks at inflation differentials. If one country has a high inflation relative to another, the country with the higher rate will lose its competitiveness over time. That tends to put downward pressure on the currency.
Certain market dynamics could also have an affect on currency valuations. Australia's currency appreciated because of its strong commodity markets, yet its trade picture was poor, said Jalinoos.
Many people think that the U.S. currency is one of the most undervalued, so that means other currencies, by comparison, are overvalued.
However, there are some currencies that look attractive. The South Korean won, Mexican peso and Indian rupee could all appreciate in value over the next several months, said Jalinoos.
Mexico is undergoing structural changes that could give the peso a "one-off boost," while India, which "never looks good in terms of its currency account position," he said, could see its currency rise after its election for prime minister in May. It's expected that Narendra Modi, a more market-friendly candidate, is going to win.
Whether you're an average investor who wants to mitigate currency risk or a more sophisticated one who wants to take advantage of currency fluctuations, the forex world isn't for the faint of heart.
It can be hard to understand, but it's also something that can't be ignored. Unless you only invest in the U.S., you have to pay attention where the world's money is headed.
"Investors are more globally oriented and have more overseas exposure than ever before," said Jalinoos. "That guarantees that there's a need for people to take more interest in this topic."