Focus on EU Summit

Recovered off Wednesday's low of $1.1720, touching a high of $1.1771 ahead of the 1600BST fix, then drifted back to $1.1744 before closing the day at $1.1746. Moves were seen USD led as the currency pared Tuesday's gains. Rate touched a low of $1.1741 in early Asia then slowly clawed its way up to $1.1758 in a fairly subdued Asian session. EZ IP provides main domestic data interest(1000BST) with plenty of ECB speakers on the docket. Lagarde speaks at 0900BST, Mersch(1200BST), Lane(1300BST), Villeroy(1500BST), de Cos(1515BST). More interest will be on the start of the EU Summit(1400BST), with first topic of discussion being Brexit. US PPI at 1330BST, with Fed speakers including Barkin(1335BST and 1900BST), Clarida(1400BST), Quarles(1530BST) and Kaplan(2000BST and 2300BST). EU Summit, COVID spread/actions and US fiscal development headlines to drive market direction. Support $1.1720, $1.1700/1.1696 ahead of stronger level at $1.1685/80. Resistance $1.1770/80, $1.1800.

MNI Techs: EURUSD traded lower Wednesday but did manage to find support at the day low. Attention has been on key support at 1.1725, Oct 7 low. This level was probed Wednesday. A clear break would negate recent bullish signals and allow for a deeper pullback, exposing 1.1612, Sep 25 low and the key bear trigger. A move higher would again refocus attention on key resistance at 1.1831, Oct 10 high. A break of this level resumes recent bullish pressure.