Rate follows GBP higher; scores highs overnight Europe but fails into early New York. Recovers late in the day suggesting short-term players on the short side covering back. 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 Wednesday: All times EASTERN (-5 GMT)

2:00am EUR GfK German Consumer Climate

All Day EUR German Prelim CPI m/m

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