Live Perspective Broadcast

Date: October 17, 2005 14:00GMT 10EST

Expert: Derek Frey, Head Trader Of Odom & Frey Futures & Options

Topics:
Market reaction to news!
- This week's data and events
- Key support and resistance for major markets
- Derek's insight on the week inreview and the week to come
Currencies
- Euro
- Dollar
- Pound Sterling

Who is Derek Frey?
Derek Frey has been a futures trader since 1989 and is Head Trader and partner at Odom & Frey Futures & Options, a firm that specializes in high probability, defined risk option spread trades for the futures markets. Derek is also co-author of O&F News & Views, a weekly newsletter that is published by several publications and over 20 financial websites including FXStreet.com.

Speech Material:

New Live Perspective Broadcast
FX street.com is proud to launch a NEW informative, analytical, overview of the pre-week Market. We are delighted to have Derek Frey of Odom & Frey Options and Futures as our guest to give a fly on the wall insight to the happenings in the FOREX & Futures market for the coming week.

We hope you enjoy the Live broadcast and get up to date tips on how to tackle the week ahead. Bring your thoughts and doubts to the table by participating throughout the session actively and challenge the speaker with your questions, & concern's for the week ahead.

FXStreet.com has spoken with and listened to the needs and wants of thousands of clients and combined with our Live Q&A Sessions hope to erase the fears & woe's of our cliental and bring them up to speed with the latest happenings in the market.

***Please note that this session is not a lecture format chat session. To ensure success, please actively participate thorughout, ask REAL time questions, post points of view, queries, doubts and concerns and recieve immediate feedback and the opinion of our expert.**

FX street.com is delighted to bring a new informative, analytical, review of the market week.

Weekly meet with the expert, listen to their thoughts and inside view on the market as they see it. Join us every Monday to get up todate hot hints on how to trade in the week ahead.

FXStreet.com has through hard-work, honesty and credibility listened to the wants of clients and combined with our Live Q&A Sessions we hope to erase the fears of our cliental and bring them up to speed with the latest happenings in the market.

Forex Currencies: ***All Currency comments are based on Forex numbers.***

The Dollars key reversal on Thursday of this week is very important. This market was able to get to 90.28 intra day and then fell all the way to 89.61 by the close of the same day. This is a clear sign of a market that is exhausted. The Dollar will be below 87.50 by the end of next week. Derek Frey 10-14-05

Euro: Continued to struggle this week but looks like it found support and now looks like it is about to have a very strong move up. Any buy in the 120 range should be a good long term hold.

US Dollar: Thursday’s key reversal should set the stage for the Dollar to break down all of next week. We are holding an 87 -85 put spread for Dec. and feel very good about this position.

Swissy: The swissy struggled this week but do not lose faith, the weakening dollar should allow the swissy to find new highs by the end of next week.

Pound Sterling: The pound has made what could be a double bottom and can now be bought. Look for a strong move here next week as well.

Yen: After a brief run above 115 the Yen seems to have reached a temporary top and could now pull back down to 112 next week.

Australian Dollar: The Australian Dollar has had a rough week and briefly pulled back below 75, but ended the week slightly above 75. This market should find its way above 76.50 by the end of next week.

Canadian Dollar: The Canadian Dollar rallied. This market should resume the bear trend this coming week as well. Sells above 118 should be good longer term holds.

Mexican Peso: The Mexican Peso broke out in the middle of the week and then failed to follow through. This is a classic head fake and could have the Peso trading as low as 10.70 early next week.

Session Transcript:

FXstreet Moderator (Oct 17, 2005 10:07:45 AM)
FX street.com is delighted to bring a new informative, analytical, overview of the pre-week Market.

FXstreet Moderator (Oct 17, 2005 10:07:54 AM)
Thank you for joining today’s Live Perspective Broadcast We will begin with our expert Derek Frey Head trader from Odom &Frey Futures and Options summarising his views and thoughts on the coming week.

FXstreet Moderator (Oct 17, 2005 10:08:06 AM)
Meanwhile please prepare any questions you may have.

FXstreet Moderator (Oct 17, 2005 10:08:17 AM)
Remember Today its open floor any questions you have playing on your mind or just queries in general please prepare and get ready to post them.

FXstreet Moderator (Oct 17, 2005 10:08:26 AM)
Thank you for your participation.

FXstreet Moderator (Oct 17, 2005 10:08:45 AM)
Please refresh you page to read Todays insights..

Derek (Oct 17, 2005 10:12:15 AM)
Good morning afternoon or evening.

FXstreet Moderator (Oct 17, 2005 10:12:15 AM)
Lets begin with your questions

FXstreet Moderator (Oct 17, 2005 10:12:38 AM)
If you cant refesh please sign out and in again..

Derek (Oct 17, 2005 10:12:41 AM)
Lets jump right in today as we have a lot to cover...

tasso (Oct 17, 2005 10:12:42 AM)
What are the leading technical indicators in forex trading

Derek (Oct 17, 2005 10:13:26 AM)
The proper indicators to use or the most popular is very subjective...

Derek (Oct 17, 2005 10:13:54 AM)
I personally like old fashoned simple indicators over "new" ones

Derek (Oct 17, 2005 10:14:09 AM)
Slow Stocastics is a personal favorite of mine

Derek (Oct 17, 2005 10:14:30 AM)
I also use Bollinger Bands quite a bit

Jack (Oct 17, 2005 10:14:49 AM)
The EWave count on the Swissy weekly chart shows what looks like a failed Wave V do u agree?

Derek (Oct 17, 2005 10:16:28 AM)
I would agree that it has failed so far but there is still an outside chance that it could complete the wave V in the coming weeks

Guest (Oct 17, 2005 10:18:33 AM)
Getting a shaper focus on the EURUSD movement. I liked to get a better understanding as to why the USD bulls were so adamant when the news really bent in favor of the EUR. So what about the forex market made the difference in preferring the USD over the EUR? Bias?

Derek (Oct 17, 2005 10:19:29 AM)
Q: Whats the more important fundamental data this week: 1)Inflation data or 2)Deficit data?

Derek (Oct 17, 2005 10:20:36 AM)
A: Personally the Deficit data will mean more in the long term, but for most traders the Inflation data will likely move markets more this week than the deficit data

Derek (Oct 17, 2005 10:21:48 AM)
Right now the markets seem to be trying to figure out if inflation is "real" or not...to me this is a joke...just go out and buy something, anything, at all and then tell me there is no such thing as inflation

Derek (Oct 17, 2005 10:22:08 AM)
Q: what is ur current perspective on US housing market? Are there any signs of softening?

Derek (Oct 17, 2005 10:23:36 AM)
A: US housing market is showing signs of slowing but I do not see signs of it being extreme so I do not expect much on this front in the coming weeks

tasso (Oct 17, 2005 10:24:06 AM)
It appears that the USD has trouble breaking above 90.77 so it's possible that the $US may retrace all of it's recent gains vs EU, SF, CDN.

Derek (Oct 17, 2005 10:24:21 AM)
I would agree with you...

Derek (Oct 17, 2005 10:25:13 AM)
I am not a Dollar Bull, in fact i just last week put on a put spread in the Dollar index. If any of you would like to see the trade that I put on email me after this and I will send you a copy of the trade

Derek (Oct 17, 2005 10:25:45 AM)
To me the current moves in the US ollar seem like a last gasp before going under

Derek (Oct 17, 2005 10:26:32 AM)
As I said in an earlier question, in the long run the deficit that we a running up will overshadow everything

Jack (Oct 17, 2005 10:27:02 AM)
October is the worst month of the year for gold. Has gold topped?

Derek (Oct 17, 2005 10:27:56 AM)
Good Question and as it happens I am doing an entire hour long session here at FXstreet this Thursday on Gold...

Derek (Oct 17, 2005 10:29:11 AM)
To answer your question, no I do not think it has topped...

Derek (Oct 17, 2005 10:30:02 AM)
If you would like to sign up for the Gold discussion click here...http://futures.fxstreet.com/futures/chat/chatsession.asp?id=34

Adem (Oct 17, 2005 10:30:33 AM)
This is the good time to buy Eur? with first target in1.2120?

Derek (Oct 17, 2005 10:31:07 AM)
in a word yes...since we are almost sitting on the support level you can buy here with a stop below support

f3 (Oct 17, 2005 10:32:05 AM)
Do you think the $ will hit 1.1981 anytime soon. I've got an open order in.

Derek (Oct 17, 2005 10:33:42 AM)
You may get that filled later today or this evening but tomorrow we have PPI data coming out and if you don't have it filled by then it is likely to then not get filled as I expect the PPI report to push the Dollar down and therefore the Euro should move higher

traderdesk (Oct 17, 2005 10:35:25 AM)
Momentum on the weekly chart for the Eur/USD is still showing strong for the dollar to head towards 1.18+. Do you take momentum in longer time-frames in consideration with S/R levels?

Derek (Oct 17, 2005 10:36:07 AM)
i am not a momentum trader so I really don't use it as an indicator

mm (Oct 17, 2005 10:36:23 AM)
Will usd move higher if Fed keeps lifting interest rate?

Derek (Oct 17, 2005 10:37:17 AM)
Economics 101 would say so but due to the explosion in Debt we are seeing I do not think rate hikes will be enough to prop up the Dollar

Jack (Oct 17, 2005 10:37:36 AM)
What market is ur favorite for trading currencies:1)Spot 2)Futures 3) options? Why?

Derek (Oct 17, 2005 10:37:49 AM)
Options are always my personal favoite becuase the give me the best of all worlds...

Derek (Oct 17, 2005 10:38:52 AM)
can manage my risk with them to an absolute level and at the same time I can often make more with options than contracts

Derek (Oct 17, 2005 10:39:33 AM)
Markets can only ever do one of three things...go up, go down, or go nowhere...

Derek (Oct 17, 2005 10:40:19 AM)
with Forex or Futures you can only ever make money in one of ther thee possible directions...

Derek (Oct 17, 2005 10:41:08 AM)
with options I can often put myself in a possition to make money in two out of three directions and soetimes even three out of three

FXstreet Moderator (Oct 17, 2005 10:45:05 AM)
Apologies one and all

FXstreet Moderator (Oct 17, 2005 10:45:13 AM)
Digichat seems to be down again

FXstreet Moderator (Oct 17, 2005 10:45:28 AM)
Please bear with us

FXstreet Moderator (Oct 17, 2005 10:48:41 AM)
Thank you for your participation.

FXstreet Moderator (Oct 17, 2005 10:48:49 AM)
Aplogies again everyone

FXstreet Moderator (Oct 17, 2005 10:49:01 AM)
We also hope you liked this new Q&A look & feel and format and that, above all, you found it useful. If your questions was not answered please email Derek

FXstreet Moderator (Oct 17, 2005 10:49:13 AM)
You can contact: Derek

Derek (Oct 17, 2005 10:49:57 AM)
Sorry for some technical difficulties but as usual I have very much enjoyed all the questions today and if you need to contact me directly for any reason feel free to do so at derek@odomandfrey.com

FXstreet Moderator (Oct 17, 2005 10:50:47 AM)
FEEDBACK: Please feel free to post feedback about today's session. We would appreciate this very much. I will be logged on for a while. claire@fxstreet.com Please send me topic ideas so I can suggest them to the experts...

FXstreet Moderator (Oct 17, 2005 10:52:05 AM)
Link: http://www.fxstreet.com/chat/transcriptrequest.asp Password: Frey178178

FXstreet Moderator (Oct 17, 2005 10:52:32 AM)
Transcripts will no longer be available as of November 1st

FXstreet Moderator (Oct 17, 2005 10:52:43 AM)
nor will the link to past transcripts..

FXstreet Moderator (Oct 17, 2005 10:52:59 AM)
Premium users only Im afraid..

FXstreet Moderator (Oct 17, 2005 10:53:24 AM)
How to Build a Winning FOREX Trading System

FXstreet Moderator (Oct 17, 2005 10:53:34 AM)
Automatic Alpha is invaluable

FXstreet Moderator (Oct 17, 2005 10:53:46 AM)
David J. Lyder, Author of Automatic Alpha

FXstreet Moderator (Oct 17, 2005 10:54:08 AM)
will host a live Showroom on Wednesday 19th 15:30GMT

FXstreet Moderator (Oct 17, 2005 10:54:16 AM)
http://www.fxstreet.com/chat/showroom/session.asp?id=31

FXstreet Moderator (Oct 17, 2005 10:55:06 AM)
Thank you all see you tomorrow

FXstreet Moderator (Oct 17, 2005 10:55:15 AM)
Specail open forum on Friday

FXstreet Moderator (Oct 17, 2005 10:55:29 AM)
Weakness in Retail Forex: Inherent risks of a single market maker structure

FXstreet Moderator (Oct 17, 2005 10:55:40 AM)
Join us then too

FXstreet Moderator (Oct 17, 2005 10:55:48 AM)
Thank you..