Archived IMT (2010.07.20)

GOLDs LOWER HIGHS testing the 100-day MA of 1180 but with the price and stochastics suggesting $1,220 is behind us for now and the next downside target stands at 1165-70, a break of which could lead to 1120. The main drivers of a fresh gold rally remain 1) renewed Euro crisis/bad news on stress test front or 2) increased chances of quantitative easing (QE) from the Fed. UNCONFIRMED RUMOURS of that all Spanish banks have passed the stress tests said to be propping the risk trade at the expense of USDF and JPY but no evidence of such talk. US stocks erase of their earlier losses, lifting all yen crosses, but USDJPY is seen initially capped at 87.55-60 as the daily stochastics remain negative. EURJPY negative bias remains w/ stops from the shorts above 113.30.