Archived IMT (2010.12.06)

EURO BEARISHNESS REMAINS as EURUSD fails to regain the $1.3440s mentioned in Fridays CNBC interview (view here http://bit.ly/hjjlZB ), which was required to pave way for prolonged gains. $1.3440s represented the 55-week MA, which I noted to have been an essential landmark after the Nov 23 break. ALTHOUGH THE USD INDEX DID CLOSE the week below its 200-week MA of 79.67, it did NOT close the week below its Nov 4 trendline support of 79.05. The fact that the markets have quickly returned to Eurozone concerns (IMF insistence for EU to augment its EUR 750 bln rescue fund, inevitability of renewed ECB bond purchase and Tuesdays Irish Budget vote). $1.3210 appears next short term target as long as $1.3330 is avoided. While EURCHF is taking a fresh battering, while USDCHF makes a valiant recovery after bouncing off the 0.9725 low. Although USDCHF trendline support stands at the lower level of 0.9690s, we need to closely monitor the upmove of the last 12 hours, which may suggest an extension towards 0.9930.