Rate remains in tight range but toolbox gives a buy signal. Low prints again at MAJOR support. Hard and fast break from US data last week meets with no follow-on selling; likely to encourage a round of short covering next day or two. Look to re-short later; rate feels like it wants to rally off these lows. Aggressive traders can buy this dip for a return to resistance.

Continued trade under the 1.5700 area pressures buying signals; “dead cat bounce” is likely today but if volume are there, need to hold a bit. Rate continues to track Cable and vice-versa. Stops above the 1.5820 area likely back out of range for today after the drop this week. Now that stops are cleared a rotation higher is coming.  

EURO/USD Daily

Resistance 3:  1.5750

Resistance 2:  1.5700/10

Resistance 1:  1.5620

Latest New York:  1.5575

Support 1:  1.5540/50

Support 2:  1.5520/30

Support 3:  1.5500

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

4:00am EUR Services PMI (r)

5:00am EUR Retail Sales 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