Resistance 3: 1.0550
Resistance 2: 1.0500/10
Resistance 1: 1.0480
Latest New York: 1.0422
Support 1: 1.0380
Support 2: 1.0350
Support 3: 1.0310/20
Rate weakens in early Asia and now remains two-way in light directionless trade. Traders say stops are likely building under the 103.80 area and a drop into lows mid-week is expected now that the rate failed again at the 1.0520 area. The late longs will have to bail if the rate slides back under the 1.0400 area; some of them likely out overnight. Look for rallies to be sold and the 104.80 area to hold key resistance on an upside rally. News this week is likely to remain non-eventful until NFP later. In my view, the rate needs to be sold on any strength; possible short at the 1.0450/60 area for today but that is a long-shot due to the trade under the 1.0400 area already.
Looking to re-short the next 24 hours—our stop just close enough today to tag us out.
Data due Tuesday: All times EASTERN (-5 GMT)
1:45am CHF CPI m/m 0.4%
Analysis by: Forexpros.com written by Jason Alan Jankovsky
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