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The German parliament provided backing for Chancellor Angela Merkel before the second EU Summit. This got EUR/USD out of the tight range and sent it to 1.3970.

This is unlikely to be the last EU summit that will try to find a comprehensive plan to the debt crisis. While there is an upcoming bank recapitalization deal as well as   progress towards a decision on a Greek haircut size ~50%, the leaders will likely not deliver an enhanced bailout fund, and a move upwards now can turn into a sell opportunity.

Above the magical number of 1.40, resistance lies at 1.4030, followed by 1.41. Below, 1.3950 turns into support, followed by 1.39.

Update: Indeed, a report that talks with banks are stuck sent the pair back down…

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