Rate grinds lower all day as order boards thin out and sovereign bids are absorbed. Support under the 1.5440 area appears solid but no bounce on thin volumes. OK to hold longs for a return to the 1.5800 area this week. Stops and bids noted at the 1.5580 area. Trichet hints at a rate hike for July but today’s rhetoric a bit softer; I think that is only to stem a rapid rise too quickly.

Overhead resistance appears firmer on the approach to the 1.5800/20 area which is a likely to offer upside resistance through the rest of the week. Now that the break is out of the way we will re-enter our longs. Look for inside range day closing higher tomorrow.

EURO/USD Daily

Resistance 3:  1.5900
Resistance 2:  1.5880
Resistance 1:  1.5850
Latest New York:  1.5460
Support 1:  1.5480/90
Support 2:  1.5440/50
Support 3:  1.5390/5400

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

2:45am EUR French CPI m/m 0.4%

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