The major theme for this week is a dead cat bounce in the dollar. While we are in no way bullish the dollar we do see it staging a dead cat bounce in the not too distant future.

Europe
Euro, Pound, Swiss Franc

EUR/USD
The Euro has seen a very strong run up past the 142. Last week we had expected this pair to stall and form a bull flag pattern. We were clearly early in that call. We do expect the stall to come by the end of this week. Continue to trail stops on long trades but I would not chase this market if you are not already in.

GBP/USD
The cable did finally take off as we expected and our target at 204 has been hit. We expect the market to test 206 soon but it should be choppy action that gets us there so be prepared for more volatility.

USD/CHF
Much like the Euro, our call from last week appears to have been a bit early. We do expect this pair to stage a dead cat bounce this week and we will again put on some light long trades with stops below Friday's low.

Asia
Yen, Australian Dollar
USD/JPY
This pair did in fact remain range bound between 114 and 116 last week as we had forecast. This week we see this pair breaking out to the upside above 116 with a target of 118.

AUD/USD
This pair also hit our target near 8850 and still looks strong. We should see a test of 9000 before we see a stall. Continue trailing your stops as a quick correction should be setting up this week.

North America
Canadian
USD/CAD
This pair continues to move lower although ever so slightly. We continue to see a bounce back above par coming this week. Frankly though we see greater opportunities in other pairs this week.

Derek Frey is Head Trader at Odom & Frey Futures & Options.

Risk Disclaimer
Past performance is not indicative of future results. Trading futures and options is not suitable for everyone. There is a substantial risk of loss in trading futures and options.