Resistance 3: 1.3500/10

Resistance 2: 1.3450

Resistance 1: 1.3380

Latest New York: 1.3165

Support 1: 1.3080/90

Support 2: 1.3000/10

Support 3: 1.2960

Comments

Rate two-way, holds support from yesterday suggesting the bottom may be forming around the 1.3200 area. 50 bar MA failed to offer solid support and selling may have been late-follow-on and will be squeezed out. Semi-official and sovereign bids seen at the 1.3200 area. Cross-liquidation continues. Sovereign offers seen into the highs last week traders say but those may be covering into the dip this week. Overnight semi-official bids reported by some desks. Aggressive liquidation by EURO-Sterling cross spreaders providing the main selling. Technical levels around the 1.3300 area are firm; look for a solid bounce from here. Correction lower is likely near its end, likely at a buy point on this dip to start the week but some momentum still there for lower action.

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

2:00am EUR German Final CPI m/m

5:00am EUR CPI y/y

5:00am EUR Core CPI y/y

7:45am EUR Minimum Bid Rate

8:30am EUR ECB Press Conference

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