The Euro stands at the front foot ahead of key EU summit decision

EURUSD

The Euro regained traction and probes again above former high at 1.1422 on Friday, following strong upside rejections and failures to close above 1.1422 barrier.
The action in past two days left daily candles with long upper shadows that could be seen as initial negative signal.
On the other side, limited dips and today’s fresh advance signal that bias remains with bulls.
The notion is supported by bullish daily techs, but overbought stochastic warns that bulls may run out of steam again.
The pair is on track for strong weekly advance and eventual close above 200WMA (1.1335) after six consecutive failure to do so, but weekly close above 1.1422 is need to confirm bullish stance.
The EU summit is the key event for the single currency today, as bloc’s leaders are going to try again to reach an agreement on a 750 billion euro recovery fund.
The deal is expected to inflate the Euro for extension towards targets at 1.1500/1.1600 zone, with stronger acceleration towards key Fibo barrier at 1.1822, not ruled out, as positive impact on agreement of EU leaders would last.
If bloc’s leaders fail to reach agreement, which according to many market observers, is very likely, then new meeting will be required and the euro would be deflated, with risk of dip towards supports at 1.1300 zone.

Res: 1.1441; 1.1452; 1.1495; 1.1519
Sup: 1.1385; 1.1370; 1.1345; 1.1310