Rate fails overnight at the two-year 50% fib defense at 1.3850 after a volatile start. Rate is an absolute screaming buy in my view. Aggressive traders can buy anytime under the 1.3900 handle in my view. Traders note stops triggered on the way down along with technical selling.

Oil weaker helps pressure also. Traders note stops building above the market but those likely remain out of range today. Expect more two-way action with upside bias; traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market. Traders suggesting that the rate is continuing to trade technically. A bottom is due soon but the question is where.   

EURO/USD Daily

Resistance 3:  1.4000/10
Resistance 2:  1.3950/60
Resistance 1:  1.3900/10
Latest New York:  1.3622
Support 1:  1.3540/50
Support 2:  1.3500
Support 3:  1.3480

Data due Tuesday: All times EASTERN (-4 GMT)

6:00am EUR German Factory Orders m/m
9:30am 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