Rate continues to hold at support. Spillover from GBP helps hold the rate above support at 1.2800/10 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 likely building under the 1.2800 area now as expected; stops cleared near-term.

Dips likely to be bought hard now that sellers couldn't make a stand over 1.3000 with confidence on the first try; a test of stops at 1.3030 likely. Aggressive traders can ADD to open longs again. Stops building above the market around the 1.2950/60 area cleared so if sellers are active they may place them there again.

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: 1.3080
Resistance 2: 1.3050
Resistance 1: 1.3000/10
Latest New York: 1.2913
Support 1: 1.2580
Support 2: 1.2550
Support 3: 1.2480

Data due Wednesday: All times EASTERN (-5 GMT)
2:00am EUR German WPI m/m
2:45am EUR French Industrial Production m/m
4:00am EUR Italian Industrial Production 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