Rate follows GBP in two-way action, holding support now above the 1.2720 area. Aggressive traders can add to open longs on this dip but BE CAREFUL as volatility is just huge. Test of today's lows likely at this point but traders note big names on the buy side on dips under the 1.2600 and 1.2620 area.

Upside stops likely cleared at the overhead resistance at 1.2720/30 area now with stops likely the other side. Key 1.3030 area likely next; failure to hold 1.2900 likely going to be the test for the bulls this week.

Close above key 1.3030 area needed for further upside until then rallies likely to be sold so expect more two-way action. Bulls are still attempting to find a bottom. Technical levels around the 1.2920/50 area now likely to offer resistance so expect two-way action and consolidation underneath. 

EUR/USD Daily

• Resistance 3: 1.2920
• Resistance 2: 1.2880
• Resistance 1: 1.2820
• Latest New York: 1.2857
• Support 1: 1.2550/60
• Support 2: 1.2480
• Support 3: 1.2450

Data due Thursday: All times EASTERN (-4 GMT)

• 3:45am EUR French CPI m/m
• 3:45am EUR French Final Non-Farm Payrolls q/q
• 5:00am EUR ECB Monthly Bulletin
• 6:00am EUR PPI m/m
• 7:00am EUR German Industrial Production m/m
• 7:30am EUR ECB President Trichet Speaks 

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