Rate falls to support and holds as knee-jerk reaction to rate cuts is bought. Traders note large stops at the 1.2770 area. Russians buying EURO around the 1.2860 area traders say. Bids on dips from profit-taking shorts some desks report. Semi-official names on the offer near the highs with stops reported on a move over the 1.2900 area and rate caps at 1.2956. Stops likely cleared.

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. If Oil rallies likely will 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: 1.3200/10
Resistance 2: 1.3150
Resistance 1: 1.3030
Latest New York: 1.2770
Support 1: 1.2520/30
Support 2: 1.2500
Support 3: 1.2480

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

2:00am EUR German Trade Balance
2:45am EUR French Gov Budget Balance
2:45am EUR French Trade Balance
6:00am EUR German 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