Resistance 3: 1.3400/10

Resistance 2: 1.3380

Resistance 1: 1.3330

Latest New York: 1.3240

Support 1: 1.3150

Support 2: 1.3100

Support 3: 1.3080

Comments

Rate holds point of indecision so far today; late break fails to attract more bids but still solid above the 100 day MA. Traders note strong offers above the 1.3330 area but bids are absorbing those for now with a foothold over the 1.3300 handle to signal a short-squeeze. Rate has two-way action 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 1.3330/50 area now back in play; expect sellers in that area on a rally. Possibly more official and semi-official bids overnight with traders noting Middle-eastern names on the bid. Long-term bulls are likely still in control of the market and this significant pullback is a buying opportunity in my view.

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

7:45am EUR Minimum Bid Rate

8:30am EUR ECB Press Conference

10:00am EUR ECB President Trichet Speaks

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