Rate falls into stops layered close in and accelerates on thinner volumes. Low prints from active selling at 1.4570; rate makes a six-month low and traders report profit-taking bids.

Oil retreats also helping to pressure rate, this is a buying opp in my view but we need to wait 24 hours. 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:  1.4800
Resistance 1:  1.4760
Latest New York:  1.4648
Support 1:  1.4570
Support 2:  1.4550
Support 3:  1.4520/30

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

2:00am EUR German Import Prices m/m
All Day EUR German Prelim CPI 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