Rate has inside range day but rallies on news of potential rate cut; OK to look at the buy side on weakness to the bottom of the range. Pullback to the 1.3400 handle on lighter volume. Rate is an absolute screaming buy in my view. Aggressive traders can buy anytime under the 1.3900 handle in my view.

Traders note stops triggered on the way down along with technical selling. Oil weaker helps pressure also. Traders note stops building above the market but those likely remain out of range today.

Expect more two-way action with upside bias; traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market. Traders suggesting that the rate is continuing to trade technically. A bottom is due soon but the question is where.

EURO/USD Daily

Resistance 3:  1.3900/10
Resistance 2:  1.3880
Resistance 1:  1.3800/10
Latest New York:  1.3623
Support 1:  1.3480
Support 2:  1.3440

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

2:45am EUR French Government Budget Balance
2:45am EUR French Trade Balance
6:00am EUR German Industrial Production 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