Resistance 3: 1.3400/10

Resistance 2: 1.3380

Resistance 1: 1.3330

Latest New York: 1.3285

Support 1: 1.3150

Support 2: 1.3100

Support 3: 1.3080

Comments

Rate recovers to reject the 100 day MA, stops from late shorts seen in the 1.3250 area and above. Traders note strong offers above the 1.3330 area but bids are absorbing those for now with a solid foothold over the 1.3300 handle to start New York. Rate has two-way action and returns to the highs to end suggesting a try for stops above. Rate likely has stops building in both directions but shorts have taken minor control of the market as the rate gives back gains over the 1.3400 area last week late. Action remains two-way; any move lower is likely supported on dips. Overhead resistance of 1.3350 area now back in play; expect sellers in that area on a rally. Possibly more official and semi-official bids overnight and today. Long-term bulls are likely still in control of the market and this significant pullback is a buying opportunity in my view.

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

2:00am EUR German Retail Sales m/m

4:00am EUR Final Manufacturing PMI

5:00am EUR Unemployment Rate

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