High prints in New York as stocks firm further, follow-on selling drops the rate into light stops after IFO data released but lows hold above Friday's action and stops lift to new weekly highs. Possible reversal now in play. 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. Likely some spillover support from GBP.

Traders note stops building above the market around the 1.2750 area in size cleared with no pullback suggesting rate will look for the stops noted around the 1.2950 area with more over 1.3000 but offers likely to cap. 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: 1.3020/30
Resistance 2: 1.3000
Resistance 1: 1.2950
Latest New York: 1.2916
Support 1: 1.2420
Support 2: 1.2380
Support 3: 1.2320/30

Data due Tuesday: All times EASTERN (-5 GMT)
2:00am EUR GfK German Consumer Climate
2:00am EUR German Final GDP q/q

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