EURO USD Daily

Rate continues to hold above previous support. Spillover from GBP helps hold the rate above support at 1.2950 area but lack of follow-through above 1.3050 a caution to the bulls. Buyers are willing on dips. Possible reversal now in play but the rate needs to firm above the 1.3050 area now that stops are cleared in my view. Bids seen on dips traders say. Dips likely to be bought hard now that sellers couldn’t make a stand over 1.3000 with confidence on the third try this week; stops at 1.3080 and above likely the next target. Aggressive traders can ADD to open longs again.  Support also from cross-spreaders as they unwind Yen. Rate is an absolute screaming buy in my view—I can’t see further weakness being ignored by the buyers. Traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market.  
Data due Thursday: All times EASTERN (-5 GMT)
2:45am EUR French Final Non-Farm Payrolls q/q
3:05am EUR ECB President Trichet Speaks
4:00am EUR ECB Monthly Bulletin

Resistance 3:  1.3150
Resistance 2:  1.3120
Resistance 1:  1.3080
Latest New York:  1.3016
Support 1:  1.2750
Support 2:  1.2680
Support 3:  1.2600