Although rate is off the highs it is holding firm against the USD. If oil retreats expect a pullback but that is a buying opp in my view. Stops in the 1.4750 area cleared on the way lower but holding above there suggests a "buy the dip" mentality; next level is still above the 1.4900 handle most likely. Support solid in my view at 1.4700 area now; grind in two-way action is good but we want higher volumes on rallies to form this bottom.

Traders suggesting that the rate is vulnerable to a short squeeze. Market is heavily short now so expect a rally. Aggressive traders can continue buying this dip for a return to resistance. 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 Daily

Resistance 3:  1.4880/1.4900
Resistance 2:  1.4850
Resistance 1:  1.4800/10
Latest New York:  1.4748
Support 1:  1.4690/1.4700
Support 2:  1.4650
Support 3:  1.4620

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

2:00am EUR German Consumer Confidence
2:00am EUR German Final GDP q/q
4:00am EUR German Ifo Business Climate Index
4:00am EUR German Ifo Business Expectations Index

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