Rate rallies away from support, some upside drawn from Cable no doubt. Late break again likely from equities rally. Expect more two-way action but the next dip could be larger after rally extends late week.

Traders note the rate is firm on dips so far despite the uncertainty in the market. Some sympathy trade from GBP; volumes better during the day in Asia. Traders report offers in size being absorbed.

Traders suggesting that the rate is trading technically. Market likely beginning to correct oversold condition with this rally; close over the 1.4500 area can’t be ruled out this week.

Rate continues to track Cable and vice-versa. Remaining US data this week likely to be unfriendly so be ready for more whipsaw but expect a solid higher close for the week. If long, look to add to positions on any weakness. Likely a dip back to the 1.4200 handle will offer a solid buy opportunity.

EURO/USD Daily

Resistance 3:  1.4610/20
Resistance 2:  1.4580
Resistance 1:  1.4540/50
Latest New York:  1.4297
Support 1:  1.4250
Support 2:  1.4180
Support 3:  1.4080

Data due Friday: All times EASTERN (-4 GMT)

2:00am EUR German PPI 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