Resistance 3: 1.3380
Resistance 2: 1.3330
Resistance 1: 1.3290
Latest New York: 1.3207
Support 1: 1.3150
Support 2: 1.3120/30
Support 3: 1.3100
Rate has two-way overnight, holds support on a dip to 1.3150 area and rallies above 100 day MA. Bids said to be thicker; failure to extend higher with GBP a caution to the bulls. Traders note good sellers above the market but they may be late as traders note protective stops building again above the 1.3300/30 area. Traders report sovereign interest on the dip. Rate appears solid above the 100 day MA. Foothold over the 1.3500 handle needed to extend to the upside. Rate likely has stops building in both directions; overhead resistance at 1.3330/50 area back in play as initial support expected in that area fails. Long-term bulls are likely still in control of the market and this significant pullback is a buying opportunity in my view. Looking to buy this week again if 100 day MA continues to hold.
Data due Thursday: All times EASTERN (-5 GMT)
5:00am EUR CPI y/y
5:00am EUR Core CPI y/y
5:00am EUR Industrial Production m/m
11:00pm EUR ECB President Trichet Speaks
Analysis by: Forexpros.com - Written by Jason Alan Jankovsky
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