The USD opens New York mixed this morning, higher against Yen and lower against other pairs. Overnight equities were firmer lending some support to EURO and stocks are called higher to open New York suggesting better tolerance for risk after a quiet weekend.

Overnight comments from ECB president Trichet were seen as positive for the EURO also but traders note the action so far has been largely technical two-way trade. High prints at 1.3737 again drew sellers with lows at 1.3611 attracting buyers on the dips.

Rate firms again overnight; upside extends to new weekly highs. Overhead resistance now at 1.4650 with the 1.4700 handle likely to trade the next 24 hours. Traders report stops likely over the 1.4710/30 area.

The door is open to a rally back to the 1.5000 area. Some in-range stops driving some trade over the 1.4500 area. Lows likely remain secure. The volume needs to come up and I think the shorts have yet to bail as a group; that may be starting in earnest now.

Traders report stops in-range adding for two-way action. Long-term tech resistance now at 1.5000 area likely to cap near term. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom. 

Rate follows GBP in two-way action and holds gains but is not advancing as aggressively yet. Stops likely building above the 1.3740 area. Upside stops

likely cleared in size and if the rate can close above 1.3650 area more upside is likely.

Overhead resistance above 1.3350 area negated so a pullback to there would also be a strong buy. Traders note big names on the buy side on dips

overnight; semi-officials and model accounts buying above 1.3400.

Russians seen on the offer overnight in Europe. Bulls are likely in control of the market and any significant pullback is a buying opportunity in my view. Expect two-way action.

EUR/USD Daily

Resistance 3:  1.3980

Rate follows GBP in two-way action but holds better on the dip, support now above the 1.2950 area. Upside stops likely cleared in size and if the rate can close above 1.3380 more upside is due.