Resistance 3: 1.3420

Resistance 2: 1.3380

Resistance 1: 1.3320/30

Latest New York: 1.3137

Support 1: 1.3030

Support 2: 1.2950

Support 3: 1.2880


Rate follows GBP higher; scores highs overnight Europe but fails into early New York. Rate then follows GBP lower on correction but major support at 1.3030 still the key. Rally less volatile and the rate holds tech resistance at 1.3325/30 area overnight. Rally all day today suggests a short-squeeze is in the works; fall back argues the squeeze is over. Stops around 1.3030 area likely under the market. More likely in-range but probably cleared on the pullback from highs. Bulls are attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Semi-official and sovereign bids and offers seen last week. 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)

3:55am EUR German Unemployment Change

4:00am EUR M3 Money Supply y/y

4:00am EUR Private Loans y/y

5:00am EUR Consumer Confidence

Forex Analysis written by Jason Alan Jankovsky, featured by