EUR/USD
The Euro broke down last week after buyers were unable to sustain a brief move above 1.35. The pair looks like it may continue lower in the short term, targeting the support level near 1.3290 that I outlined last week. If sellers can break this pair below that support level the next area of interest is near 1.3130.

GBP/USD
The Pound is under selling pressure at the moment, though it has shown a bit more resilience than the euro. The next level of interest is a trend line near 1.9530, the market may be poised for a short term bounce of that support. However, a break below that level would signal a more substantial correction is underway.

USD/CHF
The dollar really took off against the Swissy and it looks as if we could push all the way to 1.25 on this pair in the near term. A continuation buy signal would be issued if the market can push through 1.24 early this week.

USD/JPY
This pair has been unable to break through the 122.20 resistance level which has remained intact during all of 2007. The market is going through a transitional period and is waiting for a fundamental catalyst to justify a move higher. If the upcoming data does not support a continuation of the recent strength look for sellers to jump in and push this market lower.

AUD/USD
The Aussie has become increasing volatile in the past few sessions, and this type of behavior is often indicative of a short term top. A consolidation of the gains should be expected, so look for .8375 and .8460 to serve as key technical levels. If the recent volatility calms down a bit, option traders may want to look at buying ATM puts and calls to play an eventual breakout.

USD/CAD
Last week this market finally attracted some buyers and found support between 1.0550 and 1.06. This consolidation is somewhat overdue and comes after what has been incredible move to the downside. As a result of the recent move the Canadian is now trading within just a few points of par value. Look for this market to pause at the current level and wait for the next round of data.

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.