Rate follows GBP higher; scores highs during New York at 1.3208; rally less volatile and the rate holds tech support at 1.2850/60 area overnight and 1.3180 to end the day. Rally all day today suggests a short-squeeze is in the works.

Stops baked on the dip under 1.2880 again overnight; stops around 1.3030 area and layered above cleared but more likely around 1.3280. Bulls are attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in.

Close over 1.3000 to end the day today will be seen as positive for a rally. Semi-official and sovereign bids and offers seen last week. Technical levels around the 1.3300 area now likely to offer resistance so expect two-way action and consolidation. Aggressive traders can look to buy the next dip.

EUR USD Daily

• Resistance 3: 1.3320
• Resistance 2: 1.3280
• Resistance 1: 1.3200/10
• Latest New York: 1.3172
• Support 1: 1.2850/60
• Support 2: 1.2800/10
• Support 3: 1.2750/60

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

• 2:00am EUR German Import Prices m/m
• 4:00am EUR German Ifo Business Climate
• 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