Forex: EUR/USD capped below 1.2550

FXstreet.com (Barcelona) - Another slow session in Asia-Pacific today for EURUSD last at 1.2549 near fresh 6-week highs after 4 straight days rising, and stalled below the 38.2% retrace of the down leg 1.3390/1.2037 at 1.2554. The pair is about 25 pips above its initial price in the session, lows at the same time, extending the rally prompted yesterday during NY late session after Fed minutes came in signaling a very proll QE3 in some form on the way, adding for a +1.63% gain for the pair on the week.

London session ahead will bring again plenty of minor EUR data related after few days lacking of it, starting with German final GDP at 06:00 GMT, followed by flash French PMI 58 minutes later, German flash PMI 30 minutes after, and EU PMI another 30 minutes later. For the late part of London session and early NY will come US initial jobs claims at 12:30 GMT and US new home sales at 14:00 GMT.

The EZ sovereign debt auctions front will be calmed today, but instead a meeting between Merkel and Hollande is scheduled for today, which could offer enough headlines to move the pair either way, coupled with Greek rounds of meetings with EU leaders to discuss current debt crisis.

Once above recent highs, next resistance to the upside for EURUSD shows at June 06 highs and 38.2% retrace of 1.3486/1.2037 down leg at 1.2586/90, followed by May 28/June 07 highs at 1.2626, and June 11 highs at 1.2650, while for the downside, closest support comes at Tuesday's highs 1.2488, followed by yesterday's lows at 1.2429, and past week's Aug 14/17 highs at 1.2380.