Rate begins to rally as ranges extend a bit to the upside; hook reversal showing from the toolbox suggests aggressive traders can buy the rate on dips. Rate possibly getting spillover effect from GBP. Overnight equities stronger also helping to lift the rate a bit. Support also from cross-spreaders as they unwind Yen. Official interest noted traders say.

Rate is an absolute screaming buy in my view—I can't see further weakness being ignored by the buyers; conditions are almost right to buy on the net pullback. Oil pressure likely spills over into pricing and if oil rallies it might take EURO with it. 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.

EURO/USD Daily

Resistance 3:  1.3100
Resistance 2:  1.3050
Resistance 1:  1.300/10
Latest New York:  1.2957
Support 1:  1.2330
Support 2:  ?
Support 3:  ?
 
Data due Thursday: All times EASTERN (-4 GMT)

4:55am EUR German Unemployment Change
6:00am EUR Consumer Confidence

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