Rate follows GBP higher from overnight but still an inside range despite two-way action. Still suggesting a point on indecision; traders note stops building above the market around the 1.2630 area or so cleared after the lows suggesting short-term traders active.

New weekly low rejected fairly hard suggesting a re-test is a solid buy if not already long on the dip. Traders report some semi-official interest the past 24 hours. Resistance is still formidable but large names on the dips traders say. On a rally, traders note large stops at the 1.2950 area with more over 1.3000 but offers likely to cap.

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: 1.2900
Resistance 2: 1.2850
Resistance 1: 1.2820/30
Latest New York: 1.2645
Support 1: 1.2520/1.2500
Support 2: 1.2450/60
Support 3: 1.2400

Data due Tuesday: All times EASTERN (-5 GMT)
4:30am GBP CPI y/y
4:30am GBP Core CPI y/y
4:30am GBP RPI y/y
10:30am GBP MPC Member Besley Speaks

Data due Tuesday:All times EASTERN (-5 GMT)
4:00am EUR Italian Trade Balance
1:30pm EUR ECB President Trichet Speaks

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