Cross-spreading is mitigating and EURO/JPY is recovering driving support for EURO; bailout plan is likely to fuel recovery. Dip from highs holds technical support and should attract a rotation higher. Two-year low on a Friday likely a bottom near-term.

Rate at a buy point after latest attempt higher; OK to buy the next dip. Pullback under the 1.3500 handle likely to attract bids as further dip was bought aggressively last time. Rate is an absolute screaming buy in my view. Aggressive traders can buy anytime under the 1.3900 handle in my view but be ready for continued two-way action ahead of a rally.

Oil two-way spills over into pricing but rate firm despite lower oil. Traders note stops building above the market along with offers. 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. Traders note official names on the bid.

EURO/USD Daily

Resistance 3:  1.3880
Resistance 2:  1.3820
Resistance 1:  1.3780
Latest New York:  1.3507
Support 1:  1.3500
Support 2:  1.3480
Support 3:  1.3450

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

4:00am EUR Italian Trade Balance

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