by forexpros
Rate extends lows to marginal weekly low but attracts bids; traders say large names and official buying seen overnight. Rate fails to hold firm on the 1.2600 handle but dips appear to be a test of support rather than a move lower so far. Aggressive sellers likely to try and cap above 1.2700 area ahead of key 1.3030 area; failure to hold 1.2900 likely to signal a further test of the lows but be patient. The dip is a buy opp but be nimble. Cross-spreaders likely pressure as crosses are unwound. Close above key 1.3030 area needed for further upside until then rallies likely to be sold into support around 1.2620/30 (?).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 1.2920/50 area now likely to offer resistance so expect two-way action and consolidation underneath.

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

4:00am EUR Italian Trade Balance

Resistance 3: 1.3080
Resistance 2: 1.3020/30
Resistance 1: 1.2990/1.3000
Latest New York: 1.2590
Support 1: 1.2550/60
Support 2: 1.2500
Support 3: 1.2480

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Article Source: EUR/USD Daily Analysis