Dereks Live Weekly Outlook

Date: November 28, 2005 15:00GMT 10EST

Expert: Derek Frey, Head Trader of Odom and Frey Futures & Options

Topics:
- Do not miss your opportunity to be updated in your trading needs this week.
- Derek Frey brings his view point of the forex market for coming week.
- Discuss market reaction to news.
- Enjoy his currency pairs predictions.

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:

Do not miss your opportunity to be updated in your trading needs this week.
Derek Frey brings his view point of the forex market for coming week.
Discuss market reaction to news.
Enjoy his currency pairs predictions.

Session Transcript:

Derek (Nov 28, 2005 10:21:09 AM)
Good morning to you all

Derek (Nov 28, 2005 10:21:18 AM)
Sorry for the late start this morning

Fxstreet Moderator (Nov 28, 2005 10:21:44 AM)
Morning Derek lets go straight to questions..

Derek (Nov 28, 2005 10:21:58 AM)
Sounds great

Fxstreet Moderator (Nov 28, 2005 10:23:08 AM)
Please start posting your questions now and derek will attempt to answer them..

vlatko (Nov 28, 2005 10:23:15 AM)
EUR/CAD and CAD/JPY directions or predictions? Are they over bought?

Derek (Nov 28, 2005 10:25:14 AM)
They show being temporarily overbought but the next pull back should be another entry point

gamegirl (Nov 28, 2005 10:26:45 AM)
Do you see a bottoming of the EUR this week with a turnaround beginning? And if so why?

Derek (Nov 28, 2005 10:27:52 AM)
I do see the Euro Bottoming this week and expect it to start trading in a new range between 117 and 121...

Derek (Nov 28, 2005 10:28:17 AM)
The reason why is I just do not expect much more upside in the dollar

pope (Nov 28, 2005 10:29:22 AM)
how low do you see gbp before we see levels like 1.8000

Derek (Nov 28, 2005 10:30:36 AM)
I do not expect to see 180 on the GBP any time in the near future. I expect a new range here as well but in this case it would be between 170 - 180 for the rest of the year at least

Terry (Nov 28, 2005 10:31:16 AM)
If you want to play the next pullback on EUR/USD for max profit, should you take the pullback off the 60 min chart, 4 hour chart, or daily chart?

Derek (Nov 28, 2005 10:32:00 AM)
I would use both the daily and the 15 minute chart.

JSB (Nov 28, 2005 10:32:50 AM)
Some traders say gold has reached a top. If so how will that effect fx?

Derek (Nov 28, 2005 10:33:52 AM)
I personally do not agree that we are at a top...but if we are then falling gold prices should drag the European currencies down further while at the same time boosting the dollar

vlatko (Nov 28, 2005 10:35:21 AM)
So if you see that tere is no reason for much more upside in the dollar movements, than what do expect aboth USD/JPY and why?

Derek (Nov 28, 2005 10:36:02 AM)
This is the one area where the dollar will remain strong...

Derek (Nov 28, 2005 10:36:50 AM)
The relationship between the US dept market and Japanese investors is the reason that this market is expected to maintain trend

JSB (Nov 28, 2005 10:38:54 AM)
Is there way to use futures contracts to hedge against spot forex positions?

Derek (Nov 28, 2005 10:39:47 AM)
Yes you can but it is not a "perfect" hedge...Since you are trying to hedge a cash position with a futures position, these markets can go in opposite directions depending on short term supply/demand...

Derek (Nov 28, 2005 10:40:11 AM)
99 out of 100 times you do it it should work

Derek (Nov 28, 2005 10:41:30 AM)
so to put it simply it is possible but it requires monitoring both the cash and futures price at the same time

Guest (Nov 28, 2005 10:42:17 AM)
Last couple of days people on CNBC, Bloomberg etc. that Eur/USD will go to 1.08. Any opinion on that?

Derek (Nov 28, 2005 10:43:35 AM)
Q: Last couple of days people on CNBC, Bloomberg etc. that Eur/USD will go to 1.08. Any opinion on that?

Derek (Nov 28, 2005 10:44:15 AM)
A: This is being said becuase we took out a support level and there is little if any support between where we are now and 108

Derek (Nov 28, 2005 10:44:32 AM)
I do not expect to see that target achieved any time soon

Derek (Nov 28, 2005 10:44:52 AM)
really i do not expect to see that number hit anytime at all

vlatko (Nov 28, 2005 10:45:42 AM)
Will 124,00 be a topping moment or we will have to waith till BJ start to rise its interest rates?

Derek (Nov 28, 2005 10:46:35 AM)
I think you will have to wait for the BJ to work their magic before you can confirm a top

goldfish (Nov 28, 2005 10:48:06 AM)
gbp seems to have some very tight ranges recently what would be the best way to play a breakout using options?

Derek (Nov 28, 2005 10:48:59 AM)
buying a call and put on the edge of the range is the best bet if you are trying to catch a breakout

JSB (Nov 28, 2005 10:49:55 AM)
Years ago people talked about the "Gold/Silver Ratio." How was it used? And is it still used today?

Derek (Nov 28, 2005 10:50:49 AM)
the Gold silver ratio is simply the value of an ounce of gold vs. one ounce of silver...

Derek (Nov 28, 2005 10:50:54 AM)
yes it is still used today

Derek (Nov 28, 2005 10:51:01 AM)
I use it almost daily

Derek (Nov 28, 2005 10:51:27 AM)
it is a good indicator for telling which market is leading a move

Derek (Nov 28, 2005 10:52:03 AM)
I have been calling for a "widening" of the ratio for the last few weeks now

Derek (Nov 28, 2005 10:52:48 AM)
this ratio is used by many traders in many ways it is incorrect for me to say there is only one way to use it

Derek (Nov 28, 2005 10:53:09 AM)
like most trading indicators it is subjective

Fxstreet Moderator (Nov 28, 2005 10:55:13 AM)
Ok Thats all we have time for Today Im afraid...

Derek (Nov 28, 2005 10:55:30 AM)
Well thanks again for your questions, I hoe these sessions get you primed up for the week ahead!

Fxstreet Moderator (Nov 28, 2005 10:55:34 AM)
Thank you all for your participation.. and thank you Dererk ..

Fxstreet Moderator (Nov 28, 2005 10:56:00 AM)
I hope to see u all tomorrow for another Q&A session..

Fxstreet Moderator (Nov 28, 2005 10:56:37 AM)
Here is the link to resgister :The ECB and the impact on the euro

Fxstreet Moderator (Nov 28, 2005 10:56:54 AM)
Piet Lammens, KBC Head of research http://www.fxstreet.com/chat/chatsession.asp?id=206

Derek (Nov 28, 2005 10:57:22 AM)
If any of you have a question that i did not get to feel free to email me at derek@odomandfrey.com

Fxstreet Moderator (Nov 28, 2005 10:57:50 AM)
Please contact Derek at derek@odomandfrey.com if you have any more questions or if you question was not answered..

Fxstreet Moderator (Nov 28, 2005 10:58:18 AM)
Thank you all and good bye.. and see you Tomorrow at 15GMT 10EST..