GBP/USD
The first attempt at a break out above 198 failed as we mentioned it would in last weeks issue. This week we expect a second test of the highs above 198 and this time we have a greater chance of pushing through. 199.16 is the highest high we have seen since the early 90’s and is the last point of resistance we need to break through.

EUR/USD
The Euro also tested the levels we mentioned last week and it too sold off after that. This week we see the Euro retesting those highs and making a run towards the all time high at 1.3666.

USD/JPY
Last week we saw this market break out to the upside but this week we see that breakout failing to follow through. We recommend short trades initiated above 119 with a stop at 119.34 and a target of 118 or lower.

USD/CHF
We continue to favor the short side of this pair. Once this market breaks below trend line support at about 1.2140 we could see it correct back down to 1.1900.

AUD/USD
This market continues higher and for now the trend is your friends so do not fight it. Continue to trail stops by about 50 pips and that should keep you in this pair until we see a real correction.

USD/CAD
This market also continues to trend. We continue to target a move towards 1.14 this week. That support level is not strong and we could see a move all the way to 1.13 in the not too distant future.

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.