Rate two-way and likely tracking GBP a bit; follows GBP higher but lots of stops and active buying seen. Light pressure intraday easily absorbed despite fear of pullback. New weekly high yesterday below major resistance and rate is inside range so far today suggests a point of indecision. Likely support will hold at the 1.4330 area. Some upside drawn from Cable no doubt.

Expect more two-way action with upside bias; traders note the rate is firm on dips so far despite the uncertainty in the market. Volumes better during European trade than in Asia overnight. Traders report offers in size being absorbed. Traders suggesting that the rate is trading technically but likely this rally forced techies to the sidelines. Close over the 1.4700 area to end this week will make a lot of shorts nervous next week possibly extending a short-covering rally. Expect a solid higher close for the week. If long, look to add to positions on any weakness. Likely a dip back to the 1.4300 handle will offer a solid buy opportunity.

EURO/USD Daily

Resistance 3:  1.4920/30
Resistance 2:  1.4880
Resistance 1:  1.4850
Latest New York:  1.4701
Support 1:  1.4620/30
Support 2:  1.4580
Support 3:  1.4550

Data due Wednesday: All times EASTERN (-4 GMT)

4:00am EUR German Ifo Business Climate
4:00am EUR Current Account
4:00am EUR Italian 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