Rate two-way in solid action; bids on dips from profit-taking shorts some desks report. Drop through early support finds stops and new lows attract technical selling.

Semi-official names on the offer near the highs with stops reported on a move over the 1.2900 area. 1.2700 handle fails to hold on a dip and stops likely cleared. Hook reversal showing from the toolbox suggests aggressive traders can buy the rate on dips.

Rate possibly getting spillover effect from GBP. Support also from cross-spreaders as they unwind Yen. Official interest noted traders say.

Rate is an absolute screaming buy in my view—I can't see further weakness being ignored by the buyers; conditions are right to buy on the next pullback in my view. OK to buy on a limit order. If oil rallies it might take EURO with it.

Expect more two-way action with upside bias; traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market.

EURO/USD Daily

Resistance 3:  1.3150
Resistance 2:  1.3030
Resistance 1:  1.2900
Latest New York:  1.2648
Support 1:  1.2600
Support 2:  1.2550/60
Support 3:  1.2500

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

5:00am EUR PPI m/m
All Day EUR ECOFIN Meeting

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