Net higher day argues for possible short-squeeze. Rate making lows in early trade but then bounces hard, technical selling evident from model accounts traders say suggesting that the rate has finally bottomed. Gap lower has been filled making for a technical buy signal from the lows.

Market is heavily short now so expect a rally. Larger names buying traders say. Likely the rate has flushed all longs. Macro accounts seen selling on the break Friday. Aggressive traders can buy this dip for a return to resistance although we were stopped out of first attempt at a long.

Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw.

EURO/USD Weekly

Resistance 3:  1.5000/10

Resistance 2:  1.4980

Resistance 1:  1.4930

Latest New York:  1.4922

Support 1:  1.4800/10

Support 2:  1.4760

Support 3:  1.4720/30
 
Data due Wednesday: All times EASTERN (-5 GMT)

5:00am EUR Industrial Production 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