Rate follows GBP lower and cross-spreading likely adding pressure; rate holds a test of 1.2550 area but rally is needed to hold support zone otherwise another low is likely. Stops building on both sides as the rate tests for stops on the downside first. Upside stops likely now rolled down to the 1.2630/50 area for now; likely layered through 1.2750 area.

Key 1.3030 area likely next; failure to hold 1.2900 likely going to be the test for the bulls this week. Close above key 1.3030 area needed for further upside until then rallies likely to be sold so expect more two-way action.

Bulls are still attempting to find a bottom. 100 day MA falling to key resistance area of 1.3030 area by next week likely to add to overhead resistance. Technical levels around the 1.2920/50 area now likely to offer resistance so expect two-way action and consolidation underneath.

EURO/USD Daily

Resistance 3:  1.2780
Resistance 2:  1.2720
Resistance 1:  1.2650
Latest New York:  1.2578
Support 1:  1.2550
Support 2:  1.2500
Support 3:  1.2480

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

2:00am EUR German WPI m/m
12:30pm EUR ECB President Trichet Speaks

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