Rate drops back after an up week last week; likely a correction and a buying opportunity as the 23 year lows are very likely to hold. Last week's Blanchflower comments help underscore the rate on dips but that support didn't show this morning.

Rate rallies to resistance at the 1.4250 area and falls back to leave a huge wick. Holds lows so far but a reversal could be in the works if the sort-squeeze is over. Light stops seen on the move over the 1.4100 area as late shorts get squeezed.

The USD is continuing in two-way action as the majors continue to consolidate off their weekly lows; traders note conditions remain thin and the lack of US fundamentals are keeping some sidelined ahead of the FOMC rate announcement tomorrow. After early gains in the Greenback overnight better-than-expected overseas data helped to hold the GBPO and the EURO higher although both pairs looked for new lows in early New York but reversed losses to close better on the day as early intraday shorts covered back as the day wore on.

Rate follows GBP higher; scores highs overnight Europe but fails into early New York. Recovers late in the day suggesting short-term players on the short side covering back.

Rally less volatile and the rate holds tech resistance at 1.3325/30 area overnight. Rally all day today suggests a short-squeeze is in the works; fall back argues the squeeze is over. Stops around 1.3030 area likely under the market. More likely in-range but probably cleared on the pullback from highs.

Rate follows GBP higher; scores highs during New York at 1.3208; rally less volatile and the rate holds tech support at 1.2850/60 area overnight and 1.3180 to end the day. Rally all day today suggests a short-squeeze is in the works.

Stops baked on the dip under 1.2880 again overnight; stops around 1.3030 area and layered above cleared but more likely around 1.3280. Bulls are attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in.