Rate follows GBP higher; scores highs overnight Europe but fails into early New York. Recovers late in the day suggesting short-term players on the short side covering back.

Rally less volatile and the rate holds tech resistance at 1.3325/30 area overnight. Rally all day today suggests a short-squeeze is in the works; fall back argues the squeeze is over. Stops around 1.3030 area likely under the market. More likely in-range but probably cleared on the pullback from highs.

Bulls are attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Semi-official and sovereign bids and offers seen last week. 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: 1.3420
• Resistance 2: 1.3380
• Resistance 1: 1.3320/30
• Latest New York: 1.3206
• Support 1: 1.3030
• Support 2: 1.2950
• Support 3: 1.2880

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

• 2:00am EUR GfK German Consumer Climate
• All Day EUR German Prelim CPI 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