Archived IMT (2009.10.16)

Oils close above the 200-week MA of 75.70 (highest since exactly 52-weeks) is the latest major development triggering fresh USD weakness after crude oil stocks unexpectedly fell by 1 million barrels, countering expectations of a build of 2.2 million barrels. A weekly oil close above 76.2838% retracement of the decline from 147.27 to $32.40, would likely pave the way for the next move towards 85.28 and 89.62the 50% retracement of the said move. Once again, the US Treasury report on FX found no country to be a manipulator of currencies, but did reiterate the Chinese yuan remained undervalued. Positive earnings from Google and IBM extended the stocks rally. GBPUSD breaks above the previous neckline support of $1.6255, now eyeing $1.6408 trend line resistance from the $1.7027 high. AUDUSD breaks above 0.9260 amid rising talk of parity as early as this year. Its 3-day rebound vs NZD, draws 1.2450 into focus. AUDUSD support stands at 0.9170, which could be followed by a fresh attempt to recall 0.9262.