Rate blasts through the 1.3030 key S/R area; likely on the way to the recent 1.3300 area top. Follows GBP in two-way action today then rebounds, cross-spreaders likely pressure as crosses are unwound during the day.

Two-way action overnight in light volume as stops get triggered under 1.2850 area and below but sellers run out on support at the 1.2800 handle. Close back above 1.3030 argues for another test of the 1.3300 area weekly highs. Downside bias likely running out as rate held solid support numbers around the 1.2700/20 area.

Bulls are still attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Technical levels around the 1.3300 area now likely to offer resistance so expect two-way action and consolidation. Aggressive traders can look to buy the next dip.

EUR USD Daily

Resistance 3: 1.320/30
Resistance 2: 1.3150
Resistance 1: 1.3080
Latest New York: 1.3036
Support 1: 1.2700/10
Support 2: 1.2650
Support 3: 1.2620

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

4:00am EUR Final Services PMI
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