Rate two-way and presses to highs as stops above the 1.3580 area are cleared; more noted above 1.3660 and 1.3720. Cross-liquidation continues but rallies back hard as official bids absorb offers under the 1.3350 area yesterday.

Traders note sovereign offers seen above the 1.3640 area but those absorbed so far. Aggressive liquidation by EURO-Sterling cross spreaders providing the main selling. Late longs are under pressure and can't ignore a break of the 50% fib defense numbers.

Bears took a stand at 1.4700 area last year and likely have reached technical levels around the 1.3300 area so expect some firmness in this area. Correction lower is likely near it's end, likely at a buy point.

EURO/USD Daily
Resistance 3: 1.3850
Resistance 2: 1.3800
Resistance 1: 1.3750/60
Latest New York: 1.3621
Support 1: 1.3300
Support 2: 1.3250/60
Support 3: 1.3200

Data due Thursday: All times EASTERN (-5 GMT)
2:00am EUR German Trade Balance
5:00am EUR Consumer Confidence
5:00am EUR Unemployment Rate
6:00am EUR German Factory Orders 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