High prints in early New York as stocks firm further ahead of the US open. Follow-on selling drops the rate into light stops after IFO data released but lows hold above Friday's action. Rally off the lows to score highs at 1.2740 area suggests bids are building under the 1.2600 area as expected. OK to try the long side again on a dip. Bids support to hold rate firm after whipsaw; likely some spillover support from GBP.

Two-way action still suggesting a point on indecision; traders note stops building above the market around the 1.2750 area in size suggesting short-term traders active on the sell-off; stops under the market in size likely around 1.2350 now after weekly lows last week hold. Traders report some semi-official interest the past 72 hours with possible sell interest at the highs overnight to start.

On a rally, traders note large stops at the 1.2950 area with more over 1.3000 but offers likely to cap. Support also from cross-spreaders as they unwind Yen. Rate is an absolute screaming buy in my view—I can't see further weakness being ignored by the buyers. Traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market.

EURO/USD Daily
Resistance 3: 1.2880
Resistance 2: 1.2850
Resistance 1: 1.2800/10
Latest New York: 1.2744
Support 1: 1.2420
Support 2: 1.2380
Support 3: 1.2320/30

Data due Tuesday: All times EASTERN (-5 GMT)
2:00am EUR GfK German Consumer Climate
2:00am EUR German Final GDP q/q

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