Rate two-way and tracking GBP. Dips are being bought, follows GBP both way but lots of stops and active buying seen. Traders note stops building above the market. Light pressure intraday easily absorbed despite fear of pullback. Weekly high below major resistance and rate is volatile on dips. Likely support will hold at the 1.4330 area. Some upside drawn from Cable no doubt. Expect more two-way action with upside bias; traders note the rate is firm on dips so far despite the uncertainty in the market. Traders report offers in size being absorbed. Traders suggesting that the rate is continuing to trade technically. Close over the 1.4700 area to end this week will make a lot of shorts nervous next week possibly extending a short-covering rally. Expect a solid higher close for the week. If long, look to add to positions on any weakness. Likely a dip back to the 1.4300 handle will offer a solid buy opportunity. OK to lighten up on strength.
Data due Friday: All times EASTERN (-4 GMT)
2:00am EUR German Import Prices m/m
All Day EUR German Prelim CPI m/m
EURO/USD Daily
Resistance 3: 1.4840
Resistance 2: 1.4800/10
Resistance 1: 1.4770/80
Latest New York: 1.4618
Support 1: 1.4560
Support 2: 1.4520/30
Support 3: 1.4480