Rate follows GBP lower, cross-spreaders likely pressure as crosses are unwound during the day. One-way action overnight in light volume as stops get triggered under 1.2750 area and below but sellers run out on support at the 1.2700 handle.

Major resistance is now back at 1.3030 area and a close back above there argues for another test of the 1.3300 area weekly highs. Downside bias may be running out as rate is now on solid support numbers around the 1.2700/20 area. Pullback argues the squeeze is over.

Bulls are still attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. 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: 1.2920
Resistance 2: 1.2850
Resistance 1: 1.2820
Latest New York: 1.2756
Support 1: 1.2700/10
Support 2: 1.2650
Support 3: 1.2620

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

2:00am EUR German Retail Sales m/m
5:00am EUR 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