Low prints at MAJOR support; hard and fast break likely to encourage a round of short covering next day or two. Look to re-short later—OK to stay flat a bit as we just took a huge win from the short side. Continued trade under the 1.5700 area pressures buying signals; another low likely before a “dead cat bounce”.

Rate continues to track Cable and vice-versa. Stops above the 1.5820 area likely back out of range for today after the drop this week. Now that stops are cleared a rotation higher is coming.

EURO/USD Daily

Resistance 3:  1.5700/10
Resistance 2:  1.5680
Resistance 1:  1.5620/30
Latest New York:  1.5567
Support 1:  1.5520/30
Support 2:  1.5500
Support 3:  1.5480

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

3:55am EUR German Unemployment Change
5:00am EUR CPI Flash Estimate y/y
5:00am EUR Italian Prelim CPI m/m
5:00am EUR Unemployment Rate

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