Currencies weekly outlook

The folowing is an excerpt from O&F News & Views weekly newsletter.

EUR/USD: The Euro continued to stabilize this week and I believe it is setting up for a move back above 120.00. If you notice there is a 1-2-3 bottom formation being formed at this time. A move above 119.02 will confirm this. Buy stops above 119 are a good way to catch this next move if you are not already on board from last weeks recommendation.
USD/CHF: This market is trying to break down below 130 but so far has not been able to on a closing basis. I am slowly becoming a bear of this market but will wait for a decisive move below 130 before jumping on board.
GBP/USD: Looks like my call for a new low was wrong. This market seems to really be getting some legs and I now expect to see 178 taken out this week.
USD/JPY: After briefly pushing through 121 we are now beginning to see a stall. Like I said last week this market is very overbought and needs to at the very least consolidate recent gains if not give some of them back. Expect some downward pressure this week as a test of support at 118 is not out of the question.
AUD/USD: The Ausi is trying to make it way back above 76 and that is still my target but the pace is very slow.
USD/CAD: My 115.88 level was taken out this week. I expect to see this market really break down this coming week so longs be warned and shorts get ready! This market could find itself making new lows all week.
USD/MXN: Wow can you say shakeout. The peso had been selling off earlier in the seek only to rally for the ladder half of the week. I was stopped out of my shorts and for now will stand aside. DF 12-09-05
Derek Frey
Head Trader
Odom & Frey Futures & Options

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