IFO rallies the pair higher but tech resistance at 1.5770/80 area holds to start New York. Close over the 50 bar MA likely to draw buyers but offers are absorbing so far.  Overnight news suggests that confidence in the economy is continuing to grow and combined with higher Oil prices the rate is likely to be bought on dips. Look for support on dips near the 1.5550 area.

Longs likely to have rolled up stops under the 1.5580 area so volatility possible. The rate is setting up for a potential upside recovery. Bounce back from dip under the 1.5500 handle suggests active buying on dips; traders say lots of official and sovereign names seen buying dips. I think the recovery has some legs this time but the late long may have made his move today.   

EURO/USD Daily

Resistance 3:  1.5850
Resistance 2:  1.5820
Resistance 1:  1.5770/80
Latest New York:  1.5758
Support 1:  1.5630
Support 2:  1.5580
Support 3:  1.5550

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

5:00am EUR Industrial New Orders m/m -0.4%