Rate follows GBP in two-way action, holding support now above the 1.2950 area. Upside stops likely now in-range around 1.3040/50 area. Overhead resistance is thick up to 1.3100 area so a pullback might be in the works. Aggressive traders can liquidate some longs above 1.3000 area and hold base positions.

Traders note big names on the buy side on dips overnight; semi-officials buying 1.2900 area. Close above key 1.3030 area needed for further upside until then rallies likely to be sold so expect more two-way action. Bulls are still attempting to find a bottom.

Technical levels around the 1.2920/50 area now likely to offer support on further weakness so expect two-way action and consolidation underneath.

EURO/USD Daily

• Resistance 3: 1.3100
• Resistance 2: 1.3080
• Resistance 1: 1.3050
• Latest New York: 1.3008
• Support 1: 1.2850
• Support 2: 1.2720
• Support 3: 1.2680

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

• 5:00am EUR Italian Industrial Production m/m

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