Resistance 3: 1.2850

Resistance 2: 1.2800

Resistance 1: 1.2750

Latest New York: 1.2621

Support 1: 1.2520/1.2500

Support 2: 1.2450/60

Support 3: 1.2400

Comments

Rate reverses after highs at 1.2700 area attract profit-taking by the longs and selling by the shorts; rate dips to lows into the 1.2500 handle and a drop to support likely overnight. Two-way action still suggesting a point on indecision; traders note stops building above the market around the 1.2750 area or so suggesting short-term traders active. New weekly low rejected fairly hard suggesting a re-test is a solid buy if not already long on the dip. Traders report some semi-official interest the past 48 hours. Resistance is still formidable but large names on the dips traders say. On a rally, traders note large stops at the 1.2950 area with more over 1.3000 but offers likely to cap. Support also from cross-spreaders as they unwind Yen. Official interest noted traders say. Rate is an absolute screaming buy in my view—I can’t see further weakness being ignored by the buyers. Traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market.

Data due Wednesday: All times EASTERN (-5 GMT)

Forex Analysis written by Jason Alan Jankovsky, featured by forexpros.com