GBP/USD
The cable continues to retreat as expected. We still feel that 1.96 should prove to be strong near term support. We expect some kind of bounce once we reach the 1.96 handle.

EUR/USD
This pair has also been down trending and here to we expect support at 1.34 to hold in the near term. This market could fall all the way to 1.32 but again we expect a solid dead cat bounce at or near 1.34 before falling further.

USD/JPY
The Yen continues to push higher and the carry trade continues to be the biggest headline. This "easy money" that is the carry trade cannot last much longer so for those who are participating in this carry trade, get some kind of risk controls in place before it's too late. When this carry trade does unravel it will do so with a vengeance and the time to plan for the battle is not in the middle of it but before. We see a test of the 122 highs coming this week, but frankly still prefer the short side after 122 is tested.

USD/CHF
This pair is also pushing higher and at this point we see a test of the March 9th highs at 1.2356 this week.

AUD/USD
This pair continues to correct and we have now hit our .8200 target mentioned in last weeks newsletter. We see continued downside carrying this pair to at least .8100 this week.

USD/CAD
This pair has been a one way sell off for many months now. We had been expecting some kind of bounce but so far it has not materialized. For now the trend is still your friend but if commodity prices stall or reverse so too will this trend. If you are trading this pair you need to keep one eye on crude oil as what is good for oil is good for Canada.

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.