Forexpros – The euro slipped against the U.S. dollar on Tuesday, pulling away from Monday’s six-week high but remained supported by hopes that European Union leaders would unveil a plan to tackle the region’s debt crisis at a summit on Wednesday.
EUR/USD hit 1.3878 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3908, shedding 0.15%.
The pair was likely to find support at 1.3703, the low of October 21 and resistance at 1.3956, Monday’s high and a six-week high.
Over the weekend, EU leaders moved closer to an agreement on bank recapitalization, while Germany and France neared an agreement on expanding the firepower of the euro zone’s bailout fund, the European Financial Stability Facility.
However, divisions over restructuring Greek debt remained and a final agreement was expected at a follow-up summit on Wednesday.
Earlier Tuesday, a report showed that Germany’s consumer climate outlook for November rose unexpectedly but the economic outlook component of the index declined for the third month, amid concerns over the debt crisis in the region.
The euro was also lower against the pound, with EUR/GBP slipping 0.11% to hit 0.8696.
Later in the day, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.
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