Rate usually tracking GBP lower but unable to extend losses despite good selling. Russians and Swiss names buying on the dip; inside range day suggests rate is near a bottom. Model accounts selling in EURO and GBP traders say suggesting that the rate is vulnerable to a short squeeze.

Market is heavily short now so expect a rally. Larger names buying traders say. Likely the rate has flushed all longs. Macro accounts seen selling on the break Friday. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long.

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 Weekly

Resistance 3:  1.5050
Resistance 2:  1.5000/10
Resistance 1:  1.4980
Latest New York:  1.4921
Support 1:  1.4800/10
Support 2:  1.4760
Support 3:  1.4720/30

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

2:00am EUR German Prelim GDP q/q
2:00am EUR German Final CPI m/m
2:45am EUR French Prelim Non-Farm Payrolls q/q
2:45am EUR French Prelim GDP q/q
4:00am EUR ECB Bulletin
5:00am EUR CPI y/y
5:00am EUR Core CPI y/y
5:00am EUR Flash 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