Dollar didn’t get any help from the G7 summit over the weekend, I think this quote from FT.com sums it up nicely:

”The G7’s statement effectively gives a green light to continue selling the dollar,” Michael Woolfolk, senior currency strategist at the Bank of New York Mellon

Many trading opportunities as a result will continue to be on the cross pairs with EUR and GBP against JPY but USD/JPY had an opportunity to find support along a daily chart trend line and blew though it during early trading tonight. This may open a potential short trade opportunity if the market tests and fails to mount the trend line during European trading. I’d like to sell the pair in the $114.80 / $115.20 range if it prints a bearish test overnight.

For channel trading, my pick is the USD/CAD, the pair is stuck in a nice downtrend channel and is behaving properly at the bottom range of the channel. I’m waiting to sell the pair again at the top of the channel, somewhere in the $0.9760 / $0.9790 range depending on how long it takes the pair to get back up. Canadian Retail Sales and Oil will be key to watch this week when planning this trade.

Best of luck…

-RO