Sympathy selling from GBP and lower oil drives rate into large stops under the 1.4550 area; likely an exhaustion drop as the rate is attracting professional buying. Volumes not impressive on the move traders say. Rate is overdue for a short-squeeze.

EX reversals are now negated near-term if a close today is under previous support at the prior low of 1.4570 area.

Traders suggesting that the rate is vulnerable to a short squeeze. Market is heavily short now so expect a rally. Aggressive traders can continue buying this dip for a return to resistance.

Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw.

EURO/USD Daily

Resistance 3:  1.4630
Resistance 2:  1.4600
Resistance 1:  1.4550
Latest New York:  1.4512
Support 1:  1.4460/70
Support 2:  1.4420
Support 3:  1.4400

Data due Wednesday: All times EASTERN (-4 GMT)

4:00am EUR Final Services PMI
5:00am EUR Retail Sales m/m
5:00am EUR Revised GDP q/q

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