Late rally with spillover from GBP clears all resistance; next level due around 1.3130 area or slightly higher. Possible reversal now in play but the rate needs to be firm within

Late rally extends to clear resistance—traders note aggressive bids across all pairs. Quiet corrective action in light trade overnight. Good bids reported but supply seen from semi-official names. Stops in range helps to pressure but support is on technical numbers around 1.5050 area.

Traders note solid two-way action with stops building above the market likely in the 1.5250 area and higher. Sellers hold control above 1.5100 area so far but how the rate trades into US news today will tell more. OK to buy if flat on a dip.

The USD continued to slide into late afternoon trade pushing the majors to late highs as equities continued to climb posting solid gains and holding them into the close. Traders note that much of the day's action was driven by stops as the majors climbed to new weekly highs in some pairs. Major support/resistance in several pairs helped to drive fresh USD selling as well and the speculation is high that the USD will face follow-on long-liquidation into Tuesday's trade. Traders remind that the holiday shortened week will likely encourage book-squaring and today's action helped to confirm that view as the USD bulls headed for the sidelines.

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.