Europe
Euro, Pound, Swiss Franc

This week the economic data schedule is relatively tame, though midweek we will begin to get some see housing related numbers that could potentially move the market. The market will begin to set it sites on the BOE and ECB interest rate decisions coming next week on August 2.

EUR/USD: The Euro continues climb to new highs against the dollar, albeit a bit more slowly as the market been rising for nearly a month and a half without a real consolidation. Near term support levels for this pair are 1.3750 and 1.38

GBP/USD: It should be no surprise that the pound has been trading almost side-by-side with the EUR. This pair is up almost a full .10 from its short term bottom in early June, and is now reaching into overbought territory. Longs should begin to tighten stops and perhaps take some profits as a near term consolidation or pullback is not out of the question. Support @ 2.0325 and 2.0475.

USD/CHF: This pair has found support @ 1.20 and is now appears to be staging a reversal, targeting 1.24 on the upside. That being said, there are several key levels of resistance on the way up @ 1.21, 1.2175, & 1.2275. Traders should use those levels to trail stops as this market has seen some rather large intraday swings in the last 60 days.

Asia
Yen, Australian Dollar
USD/JPY: This pair is now approaching a support level between 120.75 & 121.50. We believe this market has now entered a longer term downtrend after topping out near 124.00. Traders should wait for a push below the support levels mentioned above to lock in gains, as shorts should already be holding a solid profit on the position trade we entered weeks ago above 124.

AUD/USD: This pair got yet another fundamental boost this morning from stronger than expected PPI data in Australia. Even though this pair is likely to pause or consolidate its recent gains, I would not advise trying to short such a powerfully trending market. Longs should tighten stops or take profits off the table and wait for a pullback to re-enter the long side.

North America
Canadian
USD/CAD: The long term downtrend remains intact as sellers continue to push this pair towards par value. Support near 1.04 may provide a quick bounce, though we expect any rally to be rather short lived as the fundamentals support further downside over the next few months.

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.