Stops-driven sell-off scores new low last week but rate bounces smartly suggesting at least a small interest in bottoming. Traders report large bids on the drop, lower oil pricing pressures prices all day.

Traders report model/macro accounts continue selling the rate. Traders suggesting that the rate is vulnerable to a short squeeze. Market is heavily short now so expect a rally. Larger names buying last week traders say. Likely the rate has flushed all longs.

Aggressive traders can buy this dip for a return to resistance. Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw.

EURO/USD Daily

Resistance 3:  1.4850
Resistance 2:  1.4820/30
Resistance 1:  1.4770/80
Latest New York:  1.4716
Support 1:  1.4700/10
Support 2:  1.4650/60
Support 3:  1.4620/30

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

2:00am EUR German PPI m/m
5:00am EUR German ZEW Economic Sentiment
5:00am EUR ZEW Economic Sentiment

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