Resistance 3: 1.5880
Resistance 2: 1.5850
Resistance 1: 1.5810/20
Latest New York: 1.5699
Support 1: 1.5700/1.5690
Support 2: 1.5650
Support 3: 1.5600
Rate holds inside range so far for the day but is evidently starting the week a bit softer. Overhead resistance appears firmer on the approach to the 1.5800/20 area with stops said to be out of range above around the 1.5850 area. Traders note that the rate feels heavy to start the week and warn of a potential overhang of stale longs. Stops under the 1.5700 area are said to be in size and bids ahead are from larger names, Lack of volume a concern but no trouble attracting selling pressure today. Look for model and momentum accounts to be on the bid the next 24 hours and should that be the case the rate is due for a break lower. Adding to the potential is the COT data showing a flip to net long from net short before the holiday. A washout is likely in my view.
Data due Wednesday: All times EASTERN (-5 GMT)
2:00am EUR German Import Price Index m/m 0.6%
4:00am EUR Current Account 4.3B
Tentative EUR German CPI m/m (p) 0.3%
Analysis by: Forexpros.com written by Jason Alan Jankovsky
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