Late break with spillover from GBP clears stops under the 1.2700 area and 1.2620/30 area. Possible reversal now in play but the rate needs to firm above the 1.2850 area in my view.  

Bids are building under the 1.2600 area as expected; sell-off likely to be bought hard now. OK to try the long side again on a dip. Traders note stops building above the market around the 1.2750 area in size likely to help create some two-way action but initial try for stops misses with a high print at 1.2767. Support also from cross-spreaders as they unwind Yen.

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:  1.2950
Resistance 2:  1.2880
Resistance 1:  1.2750/60
Latest New York:  1.2709
Support 1:  1.2580
Support 2:  1.2550
Support 3:  1.2480

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

4:00am EUR Final Services PMI
5:00am EUR Retail Sales 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