Archived IMT (2010.11.02)

KEEP A CLOSE WATCH ON 10-yr YIELDS as these drop back towards the important 55-day MA of 2.58%, which previously acted as a key resistance. Although we closed the week above the 55-day MA, I did point out my apprehensiveness regarding the potential for false break. Whether the 55-day MA previously acting as a resistance will now act as a support remains to be seen. But any close below 2.57-56% today should translate into extended upside in AUDUSD towards 1.0070 and EURUSD into 1.4120.