Rate has a short-squeeze last week as stops above the 1.5800 and 1.5880 area trigger; model accounts on the bid Friday traders say. Selling from solid sources capped rally Monday. Technical trade and sympathy with Cable remains the main driver.

Major support at the 1.5580 area and slightly below. Stops likely under the 1.5680 area but option defense reported at 1.5650 area. Stops noted under the previous lows layered under 1.5600 to 1.5550 traders say but those are now out of range.

The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction. Exponential reversal still valid. Oil volatility helping to whipsaw the rate.  

EURO/USD Daily

Resistance 3:  ?
Resistance 2:  1.6000/10
Resistance 1:  1.5980
Latest New York:  1.5844
Support 1:  1.5820/30
Support 2:  1.5780
Support 3:  1.5750

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

5:00am EUR German ZEW Economic Sentiment
5:00am EUR ZEW Economic Sentiment

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