About the only good thing you can say about the impending EU summit is that expectations for any sort of major result are just about nil.
Normally the market gets worked into a lather over the remote possibility of the EU pulling a rabbit out of the hat. This time, the market is expecting very little and will very likely get it.
Euro bulls can take heart in the euros’ ability to hold onto key near-term support around 1.2440, just as they did late last week at 1.2520 before that level finally gave way. Bears can take solace that EUR/USD continues to consolidate losses with few signs of a major short-covering rally in the offing.
A rally past the 1.2590 area is needed to change the complexion of EUR/USD very much in the next few sessions while a close below 1.2440 will open the way for a retest of the June lows.