Early break bought back but whipsaw is on no volume and rate is stuck. Some semi-official selling possible. Stops and short-squeeze by Russian buying this morning; resistance at 1.5750 area holding. SWF’s were selling EURO on the rally last week; need to see them back this week. Close back under the 1.5700 area needed to pressure buying signals or at least postpone them a few days. Lots of two-way action under the 1.5700 handle.

Rate continues to track Cable and vice-versa. Stops above the 1.5820 area possibly in range today; stops under the 1.5620/30 area likely in size and enough to test 1.5580 major support. Hold shorts and let it work. Large names on the offer reported into the highs, look for a top to form.

Major support at the 1.5580 area and slightly below. The 50 bar MA likely to offer support should the rate fall back but still looking for a test under the 1.5600 area soon. 

EURO/USD Daily

Resistance 3:  1.5840/50
Resistance 2:  1.5800
Resistance 1:  1.5750/60
Latest New York:  1.5749
Support 1:  1.5670/80
Support 2:  1.5620/30
Support 3:  1.5580 (MAJOR SUPP)

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

All Day EUR German Prelim CPI m/m

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