Rate still two-way, dragged higher by Cable but offers at 1.5750/60 capped any further daily strength today. Stops above the 1.5820 area out of reach so far today. Hold shorts and let it work. Stops under the 1.5700/1.5680 area likely in size; expect a sharp break and a close under the 1.5700 area if triggered. Large names on the offer reported into the highs, look for a top to form.

Major support at the 1.5580 area and slightly below. The 50 bar MA likely to offer support should the rate fall back; bids will likely be in the 1.5580 area or so on any meaningful correction; which is looking better after the break this week. Exponential reversal still valid.  

EURO/USD Daily

Resistance 3:  1.5900
Resistance 2:  1.5850
Resistance 1:  1.5800/10
Latest New York:  1.5685
Support 1:  1.5650
Support 2:  1.5620/30
Support 3:  1.5580 (MAJOR SUPP)

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

3:30am EUR German Manufacturing PMI
3:30am EUR German Services PMI1
4:00am EUR German Ifo Business Climate Index
4:00am EUR German Ifo Business Expectations Index
4:00am EUR Manufacturing PMI
4:00am EUR Services PMI
4:00am EUR Current Account

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