Bernanke comments create a bear-trap sell-off; aggressive traders can get long again anytime as the rate fails to attract enough active selling. Late shorts getting creamed on the close. Volumes still only moderate but sellers can’t get the edge. Favor the long side on dips; upside bias still remains and a limit order is the way to go I think. Weekly studies show buy signals as well.

Support at 1.5500 gave way to light stops after the news but the rate found bids and now has crossed the opening range. The bottom is in my view, Overhead resistance appears firmer on the approach to the 1.5800/20 area which is a long ways from here now. Look for model and momentum accounts active on the offer overnight Monday and/or Tuesday.

EURO/USD Daily

Resistance 3:  1.5650
Resistance 2:  1.5620/30
Resistance 1:  1.5550
Latest New York:  1.5460
Support 1:  1.5410/20
Support 2:  1.5380
Support 3:  1.5330

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

3:30am EUR ECB President Trichet Speaks
4:00am EUR Services PMI (r) 50.6
5:00am EUR Retail Sales m/m 0.2%

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