GBP/USD
After an impressive rally through 200 the cable has stalled. We continue to look at the Doji formation on the daily charts as a near term top indication. This pair could pull back to about 1.98 this week. Longer term we remain bullish but the probability of a pullback this week is greater than 65%. Buy at or in the money puts and hold for the week. Cover if a new high is reached on the daily chart.

EUR/USD
We see this pair also pulling back this week. We do not expect a huge breakdown but rather a slow methodical sell off to about the 1.3425 level.

USD/JPY
This market is seen moving back up to test the upper edge of the existing channel now that we have tested the lower end of the channel and bounced last week. We target a move back to about 120 this week.

USD/CHF
This pair hit our downside target last week and has since bounced. This week we see this pair moving back to above 1.22 and then stalling upside momentum. At that point we would like to go short so clients look for a signal in our intra day updates.

AUD/USD
This pair is also showing signs of a pullback and we are targeting a move back to about .8200. This trend is far from over so do not expect a huge free fall here either. This is just a normal pullback within a larger bull market.

USD/CAD
This pair has also hit our targets from last week and we are also seeing a bounce this week. This is a dead cat bounce so look for it to carry this pair back to 1.1355.

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.