Rate two-way, holds support from yesterday suggesting the bottom may be forming around the 1.3200 area. 50 bar MA failed to offer solid support and selling may have been late-follow-on and will be squeezed out.

Semi-official and sovereign bids seen at the 1.3200 area. Cross-liquidation continues. Sovereign offers seen into the highs last week traders say but those may be covering into the dip this week. Overnight semi-official bids reported by some desks. Aggressive liquidation by EURO-Sterling cross spreaders providing the main selling.

Technical levels around the 1.3300 area are firm; look for a solid bounce from here. Correction lower is likely near its end, likely at a buy point on this dip to start the week but some momentum still there for lower action.

EUR USD Daily

Resistance 3:  1.3500/10
Resistance 2:  1.3450
Resistance 1:  1.3380
Latest New York:  1.3165
Support 1:  1.3080/90
Support 2:  1.3000/10
Support 3:  1.2960

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

2:00am EUR German Final CPI m/m
5:00am EUR CPI y/y
5:00am EUR Core CPI y/y
7:45am EUR Minimum Bid Rate
8:30am EUR ECB Press Conference

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