EURO/USD Daily

Resistance 3:  1.5650
Resistance 2:  1.5590/1.5600
Resistance 1:  1.5550/60
Latest New York:  1.5536
Support 1:  1.5450
Support 2:  1.5400
Support 3:  1.5380

Comments

Two-way action all day, weaker close after push to resistance, look for rotation lower tomorrow. Rate clears close in stops both ways again and attracts active selling above the 1.5500 handle. Strong long-liquidation break is still coming; test of the lows as expected. Watch for two-way volatility. Be ready to add quickly if a rally happens; close under the 50 bar MA could attract active selling.

Continue to hold shorts and look for a short-covering rally to stall around the 1.5550/1.5600 area; look to add to open shorts in that area; missed it today unless actively watching.   

Data due Wednesday: All times EASTERN (-5 GMT)

3:30am EUR ECB President Trichet Speaks
4:00am EUR Services PMI 51.8
5:00am EUR PPI m/m 0.6%

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com