Forex: EUR/USD heavier as Merkel skeptic on EU budget deal

FXstreet.com (Barcelona) - EU leaders just finished first round of negotiations to agree on a budget for next year, still with not a final decision over it, as Germany PM Angela Merkel has said at the end of the meetings, less than 1 hour ago: "I believe that the positions are quite far apart, in certain respects," Merkel told journalists, Reuters reports.

EURUSD slipped few pips lower to fresh session lows at 1.2868 on very thin markets as the US is on Thanksgivings Day and Tokyo will remain closed for holiday as well, retracing from previous session highs at 1.2888, bit lower than fresh 14-day highs printed in late London session at 1.2899, capped by 55 day SMA. President of the European Council, Herman Van Rompuy, has called for the EU Economic Summit to resume at 12:00pm Brussels local time.

Immediate support to the downside for EURUSD lies at current levels as Wednesday's highs 1.2868, followed by yesterday's NY hours low at 1.2857, and yesterday's lows/previous weekly highs at 1.2833. To the upside, nearest term resistance shows at recetn session highs 1.2888, followed by yesterday's and fresh 7-month highs/55 day SMA at 1.2899, and Oct 08 lows and Fibo level at 1.2935.