Rate two-way despite sharp fall in GBP; likely cross spreaders supporting on the dip as active sellers attempt to push the rate lower into major support around the 1.2780 area; stops baked on the dip under 1.2850 today but bids were hefty resulting in a rally.

Bottom may be forming around the 1.2850 area as it has bounced twice from there. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Sell signal from the toolbox validated by the drop but be cautious as trend line support is holding.

Semi-official and sovereign bids and offers seen overnight and during the day again. Technical levels around the 1.3300 area now likely to offer resistance so expect two-way action and consolidation. Aggressive traders can look to buy the next dip.

EUR USD Daily
Resistance 3: 1.3200/10
Resistance 2: 1.3180
Resistance 1: 1.3100/10
Latest New York: 1.3017
Support 1: 1.2850
Support 2: 1.2800/10
Support 3: 1.2780

Data due Thursday: All times EASTERN (-5 GMT)
2:45am EUR French Consumer Spending m/m
4:00am EUR ECB Monthly Bulletin
5:00am EUR Industrial New 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