Odom & Frey Forex Divsion Weekly Report

General Market Comments

 

The holiday season is now behind us and this week will be the first week of 2008 that is back to business as usual.  That means that volume will finally get back to normal levels and volatility, while still high relative to the past, should begin to contract from the extreme holiday levels.  We see signs of possible Dollar strength this year but it will be hard to get a rally going in the Dollar with the expectation of more rate cuts to come in the near term.  So we will cautiously buy dips in the Dollar for position trades while continuing to day trade with the trend. 

General Market Comments

 

The holiday season is now behind us and this week will be the first week of 2008 that is back to business as usual.  That means that volume will finally get back to normal levels and volatility, while still high relative to the past, should begin to contract from the extreme holiday levels.  We see signs of possible Dollar strength this year but it will be hard to get a rally going in the Dollar with the expectation of more rate cuts to come in the near term.  So we will cautiously buy dips in the Dollar for position trades while continuing to day trade with the trend.  

 

Europe  – Euro, Pound, Swiss Franc
 

 

EUR/USD: The Euro has been surprisingly strong these last few weeks.  We do not see this pair breaking out over the old highs in the near term so we will continue to sell rallies.  We are targeting a move back to 1.45 this week.  

 

GBP/USD: The Cable has is trying to find and hold onto a bottom above the 1.96 level.  We could see a final push down to about 1.95 but that should be it.  We are turning from sellers to buyers this week.  Keep the positions sizes low in this pair this week as it is likely to struggle with the turn.

 

USD/CHF:  The Swissy really broke down over the holiday and in doing so is now very oversold.  We are buyers below 1.11 with stops below 1.10 targeting a move back up to 1.14 later this month.    

 

Asia – Yen, Australian Dollar

 

USD/JPY:  The Yen has also seen a very big break down over the holiday and it to is very oversold.  We are buyers below 109 with stops below 108 targeting a move to 112 by months end.      

 

AUD/USD:  The Ausi remains range bound between 86-88.  We see this market continuing to trade inside of this range this week with a slight upward bias.

 

North America

 
Canadian

 

USD/CAD: After falling below parity the Cad has tried to bounce back above it but so far has failed to hold onto those rallies.  We are sellers above parity with a target of .9600.

 

 
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Derek@OdomandFrey.com
 
 
 
Derek Frey
Odom & Frey Futures & Forex
645 Mayport Rd. Suite 4 E
Atlantic Beach, Florida 32266
toll free: 866.636.6378
international 904-247-0232
www.odomandfrey.com
 
 

Derek Frey, O & F’s co-founder and head trader, is one of the leading experts in the Futures & FX markets. He is regularly quoted by The Wall Street Journal, Bloomberg, The National Post, and Reuters. Mr. Frey has also published articles for Option Trader Magazine and Pit News. His market comments are sought after by traders around the world and he can be heard on etvfutures every week.