Archived IMT (2010.10.18)

US DOLLAR TURNAROUND or STABILIZATION? Fundamentals aside, the USD Index charts http://chart.ly/yqjeuyt show a bullish pattern on both the DAILY and WEEKLY, forming a classic doji on the weekly, a doji on Thursday and a bullish hammer on Friday. This coincides with the EURUSD break below $1.40, now extending to my $1.3820 target from my last nights updates on Twitter/alaidi. We could see more EUR losses below $1.38, but markets are unlikely to show anything below $1.3750s ahead of the G20 meeting starting Nov 12 and the FOMC decision of Nov 3. USDCAD recovery is likely to show more legs ahead of tomorrows BoC decision, expected to signal the door shut on further rate hikes for this year. USCAD breaks out of 1.02 resistance, eyeing nest target at 1.0310. Medium term resistance seen emerging at 1.0465. Watch the $78.10-12 support for oil. GBPCAD remains propped by the extent of CAD relative to GBP.