Irate rallies on stops but then falls back, close over the 50 bar MA likely to draw buyers but offers are absorbing so far.  Higher Oil prices are underpinning and the first correction in Oil prices will likely take the EURO with it. “Buy on dips” mentality active which means stops will be rolled up in range and the potential for a stop-driven rally is high.

Look for support on dips near the 1.5550 area. Longs likely to have rolled up stops under the 1.5650 today so volatility possible. Looking for selling pressure at the London fix today.

EURO/USD Daily

Resistance 3:  1.5880
Resistance 2:  1.5850
Resistance 1:  1.5820
Latest New York:  1.5750
Support 1:  1.5740
Support 2:  1.5680
Support 3:  1.5650

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

2:45am EUR French Consumer Spending m/m 0.4%
3:30am EUR German Manufacturing PMI 53.3
3:30am EUR German Services PMI 54.0
4:00am EUR Manufacturing PMI 50.5
4:00am EUR Services PMI 51.7
5:00am EUR Italian GDP q/q 0.2%

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