Resistance 3: 1.3080

Resistance 2: 1.3020/30

Resistance 1: 1.2990/1.3000

Latest New York: 1.2884

Support 1: 1.2750

Support 2: 1.2700

Support 3: 1.2680


Rate holds firm while other rates whipsaw; clears more stops close-in above the market from sellers yesterday on failure to hold 1.3030. Stops and active buying over the 1.3040 area traders say; those were the late buyers I think. Rate appears to be ready to close on the 1.2900 handle; fails into end of day but holds inside range day. Aggressive sellers likely to try and cap above key 1.3030 area; failure to hold 1.2900 today likely to signal a further break back to 1.2700. The dip is a buy opp but be nimble. Cross-spreaders likely pressure as crosses are unwound. Close above 1.3030 needed for further upside until then rallies likely to be sold into support around 1.2620/30 (?).Bulls are still attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Technical levels around the 1.2920/50 area now likely to offer resistance so expect two-way action and consolidation underneath.

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

4:00am EUR ECB Monthly Bulletin

5:00am EUR Industrial Production m/m

1:00pm EUR ECB President Trichet Speaks

Forex Analysis written by Jason Alan Jankovsky, featured by