Archived IMT (2010.12.07)

EURUSD MAKES ANOTHER short-lived bounce, failing to regain the $1.34 resistance. The Nov 4 trendline continues to hold. In the event that price action remains capped and no Irish vote takes place this week, then euro bears should have more confidence in dragging EURUSD back to $1.3150, especially if the PBOC delivers its rate hike this weekend prior to next weeks CPI. EURGBP makes another failure at the 0.85 before succumbing to 0.84, inline with our bearish take on the pair, allowing for 0.8320 and 0.8180 to stand as the next key med term targets.