Rate continues to hold at support, possible sovereign interest on the bid. Spillover from GBP helps hold the rate above support at 1.2750 area. Buyers are willing on dips. 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 if not already long. Aggressive traders can ADD to open longs again under the 1.2750 area near-term. Traders note stops building above the market around the 1.2950 area in size likely to help create some two-way action.

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: 1.3000/10
Resistance 2: 1.2950
Resistance 1: 1.2920
Latest New York: 1.2848
Support 1: 1.2580
Support 2: 1.2550
Support 3: 1.2480

Data due Tuesday: All times EASTERN (-5 GMT)
2:00am EUR German Trade Balance
2:45am EUR French Gov Budget Balance
2:45am EUR French Trade Balance
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