Rate dips on news, clears stops under 1.3450/60 and sovereign bids seen into the lows. Rate makes highs in NY after the news suggesting the rate is attractive on dips and shorts are weak. Action remains two-way; is not advancing as aggressively yet. Stops likely building above the 1.3740 area.

Upside stops in-range likely cleared in size above the 1.3620 area today but offers cap ahead of larger stops said to be over the weekly highs. If the rate can close above 1.3650/60 area more upside is likely. Overhead resistance above 1.3350 area negated so a pullback to there would also be a strong buy.

Traders note big names on the buy side on dips overnight; Asian sovereigns seen buying around the 1.3480 area overnight. Bulls are likely in control of the market and any significant pullback is a buying opportunity in my view. Expect two-way action.

EUR/USD Daily

• Resistance 3: 1.3980
• Resistance 2: 1.3820
• Resistance 1: 1.3740
• Latest New York: 1.3591
• Support 1: 1.3420
• Support 2: 1.3350
• Support 3: 1.3300

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

• 3:00am EUR GfK German Consumer Climate
• 5:00am EUR M3 Money Supply y/y
• 5:00am EUR Private Loans y/y

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