Resistance 3: 1.3200/10

Resistance 2: 1.3180

Resistance 1: 1.3100/10

Latest New York: 1.3017

Support 1: 1.2850

Support 2: 1.2800/10

Support 3: 1.2780


Rate two-way despite sharp fall in GBP; likely cross spreaders supporting on the dip as active sellers attempt to push the rate lower into major support around the 1.2780 area; stops baked on the dip under 1.2850 today but bids were hefty resulting in a rally. Bottom may be forming around the 1.2850 area as it has bounced twice from there. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Sell signal from the toolbox validated by the drop but be cautious as trend line support is holding. Semi-official and sovereign bids and offers seen overnight and during the day again. Technical levels around the 1.3300 area now likely to offer resistance so expect two-way action and consolidation. Aggressive traders can look to buy the next dip.

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

2:45am EUR French Consumer Spending m/m

4:00am EUR ECB Monthly Bulletin

5:00am EUR Industrial New Orders m/m

Forex Analysis written by Jason Alan Jankovsky, featured by