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Technical Analysis: EURUSD struggle for traction above 1.1700 as EU summit begins

European Union (EU) leaders are gathering in Brussels for tough talks during the next two days. While the coronavirus (COVID-19) and stimulus are other options to watch for, it's the Brexit headlines that will gain major attention. The UK PM Johnson has recently stepped back from his October 15 deadline but everything is unsure and hence a surprise awaits ahead of us. That said, EURUSD remains mildly positive above 50-day EMA, which in turn propels the quote towards a five-week-old falling trend line, at 1.1810 now. However, any more upside beyond the same will not only need to refresh the monthly top of 1.1830 but will also require sustained trading above September 10 high near 1.1920 to challenge the previous month's peak close to 1.2010.

Meanwhile, a downside break of 50-day EMA, currently around 1.1730, will drag the EURUSD quote towards an ascending trend line from July 01, at 1.1705 now. In a case where the bears sneak in around 1.1700, September month's bottom near 1.1610 will be the key as a break of which will highlight the early-June month's top near 1.1420 for the bears. Though, 50% and 61.8% Fibonacci retracement levels, close to 1.1600 and 1.1490 respectively, can offer intermediate supports during the fall from 1.1610 to 1.1420.

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