Europe
Euro, Pound, Swiss Franc
EUR/USD: Last week several of the major pairs began to correct after nearly two months of unabated gains. The Euro found some support near the 1.36 level and is staging a bit of a bounce this morning. Resistance near 1.3750 is our short term target, followed by 1.38. A breach of 1.36 could lead to a move lower towards 1.3475.

GBP/USD: The Pound reacted more severely than the Euro in last week's correction and is also likely to stage a brief bounce early this week. However, with such a dramatic decline the recent highs should serve as strong resistance and act as a ceiling for this market in the intermediate future.

USD/CHF: The 1.20 level continues to support this market and we expect this to continue going forward. Traders should watch for a push through 1.2140 on the upside to enter a long position trailing stops below 1.2080.

Asia
Yen, Australian Dollar
USD/JPY: The reversal that we had been patiently waiting for finally materialized and this pair has staged quite a reversal in the past few weeks. Traders should now be taking some short term profits off the table, watching for a short term bounce to re-enter the short side of this pair for the long term.

AUD/USD: The Aussie took quite a hit last week retracing nearly one month's worth of gains. We expect support between .84 & .85 to hold in the short term, though in the long term a sustained break below that level could signal further declines.

North America
Canadian
USD/CAD: The theme of dollar strength continues with this pair, as the Canadian weakened considerably in just a few days. Resistance near 1.07 should contain this market to the upside, though I would be cautious of trying to short this market after such a strong bounce.

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.