Big drop to start the week, selling from model accounts and stops. Dips are being bought but not enough volume to stop the slide. Traders note stops building above the market but those likely out of range today.

Support at the 1.4330 area fails hard suggesting a point of resistance on the recovery, traders report semi-officials names on the bid.

Expect more two-way action with upside bias; traders note the rate is firm on dips so far despite the uncertainty in the market. Traders suggesting that the rate is continuing to trade technically.

Expect a solid higher close for the week. If long, look to add to positions on any weakness. Likely a dip back to the 1.4000 handle will offer a solid buy opportunity. Expect huge volatility as TARP fails to pass.

EURO/USD Daily

Resistance 3:  1.4420
Resistance 2:  1.4380
Resistance 1:  1.4330
Latest New York:  1.4026
Support 1:  1.3970/80
Support 2:  1.3940/50
Support 3:  1.3920

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

5:00am EUR PPI m/m
7:45am EUR Minimum Bid Rate
8:30am EUR ECB Press Conference

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