Archived IMT (2010.06.07)

A THIN DATA WEEK IN THE US will give way to Fed Chairman Bernankes Budget testimony to Congress on Wednesday, while US audiences will watch Bernankes interview with ABCs Sam Donaldson on Monday evening. EURCHF session low was 20 pips below our 1.3870 target in Fridays IMT. EURUSD is hit a fresh 4-year low of 1.1878 before regaining a full cent, but any prolonged gains are seen capped at $1.2050. We said numerous times on this website and twitter.com/alaidi that our medium target stands at $1.17, but on Friday, we revised it to $1.1660 with an 80% certainty by first week of July. EURCHF is capped at $1.3980-85, while EURGBP faces 2-week trendline resistance at 0.8295.