Resistance 3: 1.5900
Resistance 2: 1.5880
Resistance 1: 1.5850
Latest New York: 1.5460
Support 1: 1.5480/90
Support 2: 1.5440/50
Support 3: 1.5390/5400
Rate grinds lower all day as order boards thin out and sovereign bids are absorbed. Support under the 1.5440 area appears solid but no bounce on thin volumes. OK to hold longs for a return to the 1.5800 area this week. Stops and bids noted at the 1.5580 area. Trichet hints at a rate hike for July but today’s rhetoric a bit softer; I think that is only to stem a rapid rise too quickly. Overhead resistance appears firmer on the approach to the 1.5800/20 area which is a likely to offer upside resistance through the rest of the week. Now that the break is out of the way we will re-enter our longs. Look for inside range day closing higher tomorrow.
Data due Wednesday: All times EASTERN (-5 GMT)
2:45am EUR French CPI m/m 0.4%
Analysis by: Forexpros.com written by Jason Alan Jankovsky
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.