Resistance 3: 1.3980

Resistance 2: 1.3820

Resistance 1: 1.3740

Latest New York: 1.3645

Support 1: 1.3480

Support 2: 1.3350

Support 3: 1.3300

Comments

Rate follows GBP in two-way action and holds gains but is not advancing as aggressively yet. Stops likely building above the 1.3740 area. Upside stops likely cleared in size and if the rate can close above 1.3650 area more upside is likely. Overhead resistance above 1.3350 area negated so a pullback to there would also be a strong buy. Traders note big names on the buy side on dips overnight; semi-officials and model accounts buying above 1.3400 and likely there today on the dip under 1.3500. Russians seen on the offer overnight in Europe. Bulls are likely in control of the market and any significant pullback is a buying opportunity in my view. Expect two-way action.

Data due Tuesday: All times EASTERN (-4 GMT)

4:30am EUR German Flash Manufacturing PMI

4:30am EUR German Flash Services PMI

5:00am EUR Current Account

5:00am EUR Flash Manufacturing PMI

5:00am EUR Flash Services PMI

10:00am EUR Belgium NBB Business Climate

Analysis by: http://www.Forexpros.com - Written by Jason Alan Jankovsky

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