Rate consolidates and holds gains but is capped at 1.3580 with stops likely above 1.3600 now. Rate is solid above the 100 day MA. Traders note offers above the 1.3630 area but bids continue to support ahead of 1.3480; foothold over the 1.3500 handle likely to encourage a short-squeeze. Rate likely has stops building in both directions; shorts lose control of the market after rate clears stops above the 1.3430 area.

Action remains two-way; any move lower is likely supported on dips. Overhead resistance at 1.3330/50 area now support on a pullback; aggressive traders can ADD on a dip. Possibly more official and semi-official bids overnight with traders noting Middle-eastern names on the bid. Long-term bulls are likely still in control of the market and this significant pullback is a buying opportunity in my view.

EURO/USD Daily

Resistance 3: 1.3620/30

Resistance 2: 1.3580

Resistance 1: 1.3520

Latest New York: 1.3516

Support 1: 1.3480

Support 2: 1.3420

Support 3: 1.3380

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

NONE

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For
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