Intraday Market Thoughts

Archived IMT (2010.07.19)

by Ashraf Laidi
Jul 19, 2010 15:12

STERLING WEAKEST OF THE LOT shrugging the rise in risk appetite and the resulting gains in EUR. The rally in EURUSD seems more sustainable than the bounce in US stocks, especially after the US NAHB housing survey slopped to 14 in July from a downwardly revised 16. Last weeks forecast for a lower EURGBP has further deteriorated after the clear breakout above the 0.84 resistance. Weekly stochastics in EURGBP point towards 0.8530 and 0.8580, purely on a technical play especially as the breach of the May trendline resistance ensues. Sticking with my $1.30 target for EURUSD followed by $1.3070, which could occur BEFORE the results of the European stress tests due on Friday at 16:00 GMT. WATCH US 10- yr YIELD flirt with 2.90% after more begative US data. CAD TRADERS WATCH FOR BoC RATE DECISION tomorrow, More on this later on.


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