Rate rallies away from support, some upside drawn from Cable no doubt. Expect more two-way action but the next dip could be larger after today’s rally. Traders note the rate is firm on dips so far despite the uncertainty in the market. Some sympathy trade from GBP; lows likely in finally from last week. Volumes better during the day.

Traders report offers in size being absorbed. Traders suggesting that the rate is trading technically. Market likely beginning to correct oversold condition with this rally; close over the 1.4500 area can’t be ruled out this week. Rate continues to track Cable and vice-versa.

Now that more stops are cleared a rotation higher is even more likely. Remaining US data this week likely to be unfriendly so be ready for more whipsaw but expect a solid higher close for the week. If long, look to add to positions on any weakness.

EURO/USD Daily

Resistance 3:  1.4480
Resistance 2:  1.4430
Resistance 1:  1.4380/90
Latest New York:  1.4336
Support 1:  1.4080
Support 2:  1.4000/10
Support 3:  1.3940/50

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

NONE

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