European morning session will have plenty of PMI service figures coming out, first from Spain at 07:13 GMT, followed 30 minutes later by Italy, France after another 5 minutes, Germany at 07:53 GMT, and EU's one another 5 minutes later. EU retail trade is due at 09:00 GMT, while Germany is closed for holidays. European Commission president Barroso will give a press conference at 12:30 GMT in Brussels along with Ireland PM Kenny. UK services PMI will show at 08:30 GMT, which could bring volatility to EUR/GBP cross, while anything coming from Spain and PM Mariano Rajoy will add to the growing speculation on the bail out for the country after Rajoy's words yesterday saying “what does it matter,” in respect to whether they ask for the bail out or not.
No EZ sovereign debt auctions today, with Spanish and Italian 10 year bond yields stable, below 6% and above 5% respectively.
Immediate support to the downside for EUR/USD comes at recent session lows 1.2892, followed by yesterday's lows at 1.2980, and 200 day EMA at 1.2855. For the upside, nearest term resistance shows at Sept 20 lows/recent session highs 1.2920, followed by Oct 01 highs at 1.2940, and yesterday's highs at 1.2967.