Archived IMT (2010.01.14)

Falling EURUSD and falling USDCAD is leading to a tumbling EURCAD, sending the pair to 1/4887, which is below the 61.8% retracement of the rally from the Nov 07 low to the Dec 08 high. From a stochastic point of view, the pair is well into oversold territory, while fundamentally, the source of a rebound could emerge from weakened econ figuresas was the case sicne Friday (payrolls, housing, trade deficit). USDCAD proved unable to break 1.0420 trend line resistance, now looking to retest the 1.0240 low. Expect EURUSD to find a new territory at 1.4420-50, while cable still capped at 1.6330 resistance from yesterday's chart.