Rate is failing to attract bids; offers increase on whipsaw after US data. Major support at the 1.5580 area and slightly below. Stops elected under the 1.5700 area but option defense reported at 1.5650 area. Highs were sold aggressively by Asian sovereigns again today traders say and it looks like they will attempt it again on additional strength.

Stops noted under the previous lows layered under 1.5600 to 1.5550 traders say. Should cable break—EURO could go with it. The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction. Exponential reversal still valid. Looking for a sell on this strength.

EURO/USD Daily

Resistance 3:  1.5800/10
Resistance 2:  1.5780
Resistance 1:  1.5750/60
Latest New York:  1.5654
Support 1:  1.5630
Support 2:  1.5600/10
Support 3:  1.5580

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

2:00am EUR German Trade Balance
2:45am EUR French Trade Balance
3:00am EUR ECB President Trichet Speaks

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