Cross-spreading is mitigating and EURO/JPY is recovering driving support for EURO; bailout plan is likely to fuel recovery.

Dip from highs holds technical support and should attract a rotation higher. Two-year low on a Friday likely a bottom near-term. Rate at a buy point, OK to buy the next dip.

Aggressive traders can add to open longs on a close over the 1.3700 area. Pullback under the 1.3400 handle this week on lighter volume would be a great buy in my view. Rate is an absolute screaming buy in my view. Aggressive traders can buy anytime under the 1.3900 handle in my view. Traders note stops triggered on the way down along with technical selling.

Oil two-way spills over into pricing; weaker oil helps pressure also. Traders note stops building above the market along with offers. Expect more two-way action with upside bias; traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market. Traders suggesting that the rate is continuing to trade technically. Traders note official names on the bid.

EURO/USD Daily

Resistance 3:  1.3880
Resistance 2:  1.3820
Resistance 1:  1.3780
Latest New York:  1.3653
Support 1:  1.3580
Support 2:  1.3520
Support 3:  1.3480

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

2:00am EUR German Final CPI m/m
5:00am EUR CPI y/y
5:00am EUR Core CPI y/y

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