Disappointing day for the bulls; close under the 50 bar argues for return to bearish action. Stops and offers noted above the 1.5790/1.5800 areas, COT data showed an increase in EURO shorts through last week and those are likely cleared now; fall back today tests the 50 bar MA; close below likely signals a further decline.

Trichet hints at a rate hike for July but today’s rhetoric a bit softer; I think that is only to stem a rapid rise too quickly. Overhead resistance appears firmer on the approach to the 1.5800/20 area which is a likely to offer upside resistance through the rest of the week.

Now that the break is out of the way we will look for a place to re-enter our longs. 

EURO/USD Daily

Resistance 3:  1.5900
Resistance 2:  1.5880
Resistance 1:  1.5850
Latest New York:  1.5721
Support 1:  1.5710/20
Support 2:  1.5680
Support 3:  1.5650/60

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

2:45am EUR French Industrial Production m/m -0.8%
4:00am EUR Italian Industrial Production 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