Rate follows GBP in two-way action but holds better on the dip, support now above the 1.2950 area. Upside stops likely cleared in size and if the rate can close above 1.3380 more upside is due.

Overhead resistance above 1.3100 area negated so a pullback to there would also be a strong buy. Traders note big names on the buy side on dips overnight; semi-officials buying 1.2900 area the past few days. 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 1.3150/80 area now likely to offer support on further weakness so expect two-way action. One way trade today suggests a lot of volume.

EUR/USD Daily

Resistance 3: 1.3650
Resistance 2: 1.3580
Resistance 1: 1.3500
Latest New York: 1.3451
Support 1: 1.2850
Support 2: 1.2720
Support 3: 1.2680

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

5:00am EUR Italian Trade Balance

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more
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