Rate two-way but falls through more stops to make a bottom under monthly support; 50 bar MA failed to offer solid support. Cross-liquidation continues. Rally likely bids absorb offers under the 1.3300 area. Sovereign offers seen into the highs last week traders say but those may be covering into the dip this week. 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 Wednesday: All times EASTERN (-5 GMT)

2:45am EUR French CPI m/m
4:00am EUR Italian Industrial Production m/m
5:00am EUR Industrial Production m/m

Resistance 3: 1.3500/10
Resistance 2: 1.3450
Resistance 1: 1.3380
Latest New York: 1.3190
Support 1: 1.3140
Support 2: 1.3080
Support 3: 1.3000/10

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