Follow-on selling drops rate into next support at the 1.4700 area last week but rate starts firmer. Traders note solid two-way action with stops building above the market likely in the 1.5050 area and higher. Some stops over 1.5000 flushed overnight. Sellers hold control above 1.5000 today as rate backs off highs but lows hold.

OK to buy if flat on a dip. Traders also note the same names seen in size on the bid the past few days has been on the offer overnight. Cross spreaders continue to hold interest near-term; profit-taking likely to result in a squeeze on the further strength. Technical trade overnight as traders decide near-term action with little to go on but the charts.

The USD is under pressure this morning after starting a holiday-shortened week about flat in Asia. Tokyo had a holiday today leaving a lot of Asian players on the sidelines making for slow and thinner trade; traders report that stops are building on both sides of the market after last week's neutral close and Friday's USD retreat. Equities provided a bit of lift to the majors as follow-on buying of Asian markets and Europe holding firm ahead of US trade. DJOA futures are called to open higher on Wall street which is no doubt keeping the majors on the offensive to start the day. USD/JPY rallied higher with equities as expected but was unable to clear above the 96.00 handle with any conviction; high prints at 96.09 were offered to cap the rate before heading lower.

Selling of dollars by the Reserve Bank of India (RBI) has contributed to decline the Forex reserve of country. Forex reserve is continuously under pressure after the bankruptcy of the US investment bank Lehman Brothers and other major financial institutions of world. It is declined by $5 billion in the week ended November 14 to $246.35 billion.

It is also declined following revaluation of non-dollar assets, sellout by foreign investors and strong demand by importers following failure of leading foreign financial institutions.

Rate reverses after highs at 1.2815 area attract profit-taking by the longs and selling by the shorts; rate dips to lows into the 1.2500 handle again. Bids support to hold rate firm after whipsaw. 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; stops cleared and new buying turned back.

Traders report some semi-official interest the past 48 hours with possible sell interest at the highs today. Resistance is still formidable but large names on the dips traders say. On a rally, traders note large stops at the 1.2950 area with more over 1.3000 but offers likely to cap.

Overhead resistance around 1.5100 gives way to stops above lifting the rate to highs at 1.5250; failure and reversal suggests rate is set to rotate lower and test support around the 1.4820 area. Traders note stops above the 1.5100 handle we in size but new buying turned back.

Traders also note the same names seen in size on the bid the past few days. Resistance is expected to hold rate for a pullback and aggressive traders can buy that dip if it comes. Cross spreaders continue to hold interest near-term; profit-taking likely to result in a squeeze on the further strength. Technical trade overnight as traders decide near-term action with little to go on but the charts.

After early US data was unfriendly to the USD and the greenback suffered losses the USD roared back from lows and scored new highs against most major pairs in mid-day trade. Traders note that stops above the major pairs gave early strength a boost but once the buying dried up the majors reversed hard and fell back into lows. GBP failed to challenge overnight lows at 1.4903 but dropped to the low 1.5000 handle making for a hard reversal from the high prints at 1.5252.