GBP/USD
The sentiment remains bullish and we should test the upper resistance levels that lie between 1.98 and 1.99 early this week. While longer term we are bulls this first test of resistance is likely to fail so short term short trades are likely to be the best trades early this week. After resistance has been tested look for a break out above it in the ladder half of this week or early next week. Any buys at or below 1.97 should be held with a trailing stop for as long as you can.

EUR/USD
The Euro has been slower to react and test upside resistance than the cable but the overall sentiment is the same. Look for a test of upside resistance at 1.3412 then 1.3478 and lastly at 1.3666. This week we only expect to test the first two levels. This resistance should be formidable so do not expect a runaway market.

USD/JPY
This pair continues to consolidate within its wedge pattern that I mentioned last week. This week we will trade this market a bit differently than we did last week. We will sell short above 118 with stop and reverse orders above 118.50. We will also buy long below 117 with stop and reveres orders below 116.50.

USD/CHF
This market continues to consolidate but we continue to favor short trades entered above 1.2150 with stops above 1.2200. Our target is for this market to move back to the 1.19 -1.20 range this week.

AUD/USD
This market has broken out and is on its way to .8200. This trend cannot be argued with so stay long and continue to trail stops about 50 pips behind the market.

USD/CAD
This trend is down and shorts should hold and continue to trail stops by 50 pips here as well. We are still targeting a move to 1.14.

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.