EUR/USD forming short-term uptrend? Then see resistance at 1.3572

EUR/USD probably freed itself from a falling channel and entered a slightly progressing uptrend, inside which the pair is now poised for a rebound.

Market is widely on the sidelines ahead of a key European leaders' summit the outcome of which may give fresh cues about the region's strategy of dealing with the debt issue thus helping measure the health of euro. The summit begins Thursday night in Brussels and ends Friday.

On chart, the pair looks prepared for a bouncing back to 1.3572 (R2) after a brief stop near 1.3495 (R1) where the first wave out of the recent downchannel peaked. Also, momentum indicator RSI shows the pair is near the oversold zone.

Beyond the R2/1.3622 (the 50 percent retracement of Fibonacci from 1.4280 to 1.2968) region, EUR/USD has strong resistance at 1.3777 (61.8 percent Fibonacci)/1.3784 region.

For short-term, 1.3163 is a strong support and as long as it stays, the pair will have its potential to hold on to the uptrend.

At 11:41 GMT, EUR/USD was at 1.3243, up from Wednesday's close of 1.3212.

After in-line CPI data for Euro-zone, Thursday's economic calendar has US November housing starts, third quarter current account, weekly jobless claims and Philadelphia Fed's December survey for cues for EUR/USD.