Rate drops back in thin conditions; resistance is sold but large names on the dips traders say; likely they will be gone for the holiday so more losses likely. Aggressive traders can buy the next dip under the 1.2700 handle.

Traders note large stops at the 1.2950 area with more over 1.3000 but offers likely to cap on first try if a bounce from potential pennant bottom holds. Russians buying EURO around the 1.2860 area last week traders say; offers from same likely were seen in GBP this morning. Bids on dips from profit-taking shorts some desks report. Rate possibly getting spillover effect from GBP and vice-versa suggesting both pairs may track each other near-term. Support also from cross-spreaders as they unwind Yen.

Official interest noted traders say. Rate is an absolute screaming buy in my view—I can't see further weakness being ignored by the buyers. Traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market.

EURO/USD Daily

Resistance 3: 1.3200/10
Resistance 2: 1.3150
Resistance 1: 1.3030
Latest New York: 1.2728
Support 1: 1.2680
Support 2: 1.2550
Support 3: 1.2480

Data due Tuesday: All times EASTERN (-5 GMT)

All Day EUR French Bank Holiday
2:00am EUR German WPI m/m
5:00am EUR German ZEW Economic Sentiment
5:00am EUR ZEW Economic Sentiment

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