The Underlying Fundamentals
The majority of this weekââ,¬â"¢s data suggested that U.S economic growth was in fact slowing down, that was of course until the employment numbers came out on Friday morning. Not only were the #ââ,¬â"¢s above expectations, but the markets really took notice of the upward revision to last months figure. This weekââ,¬â"¢s upward revision seems to be a recurring pattern as last month we had a revision of more than 800k jobs added in the past year. Needless to say the markets reacted quite strongly, with dollar strength against many of the majors. In the short term, the numbers are definitely bullish for the dollar, though I think the markets might be getting a little short sited when considering the overall rate of global growth. The U.S continues to see the signs of slowdown, while international growth continues at a strong pace in many regions, and if that remains the case expect the dollar to weaken.

EUR/USD
Early in the week saw we saw a continuation of the recent rally, though by Thursday afternoon the technical resistance @ 1.28 I mentioned last week came into play. Some additional fundamental selling after Fridays NFP added a bit more downside pressure on this pair. It seems as though this pair is going to be somewhat range-bound in near future, while the fundamentals sort themselves out. Look for support @ 1.2625 followed by 1.2560. On the upside the key resistance remains near 1.28 & 1.2860.

GBP/USD
Just as we expected, the 1.91 resistance level is still capping the upside for this pair. The fundamentals have supported this pairââ,¬â"¢s recent strength, although I think for this market to really break out it there needs to be some additional catalyst. In the short term I would be watching to buy a b/o through 1.91 though I think a consolidation is more likely. Support @ 1.8890 is an attractive level to go long with a stop below 1.8740.

USD/JPY
This week I finally took profits on the short position we got in just above 118. I continue to favor the short side of this pair, and if 118 can continue to hold as resistance I would once again fade any minor rally above that level. The Bank of Japan remains the wildcard for this pair as their economic weakness continues, which may prevent a rate increase in the near future. On the downside take profits near 116.40 and look to fade a push towards 118.30.

USD/CHF
On Wednesday my long entry point was hit and on Friday that trade managed a quick 100 pip profit. This pair has some visible trendline support @ 124.50 and I would cautiously try the long side of this pair at that level. On the other hand, if sellers can drive this pair through that support look to fade with 1.2280 as a near term target. If you are still long on this pair 1.2575-1.26 remains resistance, followed by the recent highs near 1.2725.

AUD/USD
This pair seemed to run out of gas as it neared .7750, which should not come as a surprise after 3 weeks of unabated strength. The fundamental foundation remains strong for this pair, though in the short term I think the market got a bit ahead of itself. As I mentioned last week, we were looking to fade this pair above .77235 and we are still in that position. Support @ .7639 is my first profit target, followed by .7575. If by chance this pair can push through .78, all bets are off and the upside potential is quite attractive.

USD/CAD
The long entry point in last weekââ,¬â"¢s newsletter proved to be quite accurate and as a result we caught a nice move on Wednesday and Thursday. Short term 113.75-114 resistance should continue to be key level. I remain a bull on this pair and with some trendline support forming near 112.30 a bounce off that level would be a good low risk entry point, with a stop below 111.80. If this pair can push through 114 I would definitely add to my long position and use a trailing stop to protect my profits.

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.