EUR/USD sees an upside above 1.0750 ahead of EU Leaders Summit

• EUR/USD is eyeing an imbalance move above 1.0765 as investors await EU Leaders Summit.
• An embargo on oil imports from Russia in Europe could be the highlight of the summit.
• Investors will remain busy ahead of the US NFP later this week.

The EUR/USD pair auctioned in a 1.0642-1.0765 range in the last week after establishing itself above the critical resistance of the May 5 high at 1.0645. The pair is expected to remain positive amid broader weakness in the US dollar index (DXY). An imbalance move above the last week’s high price at 1.0765 looks likely as investors are awaiting the European Union (EU) Leaders summit, which is due in the Asian session.

The EU leaders are expected to discuss various agendas however, a discussion over an embargo on oil imports from Russia will remain a major subject. The EU looks dedicated to punishing Russia for its inhuman activities in Ukraine. Despite getting opposition from various EU members, the EU is gauging ways to announce a complete prohibition on fossil fuels from Moscow.  Following Germany’s approval of banning Russian oil, opposition came from Hungary and the EU is still convincing the latter to support the boycott.

Meanwhile, the US dollar index (DXY) is displaying some signs of exhaustion after printing a low of 101.43 last week.  A minor rebound could take place as investors may prefer some short coverings. This week, the DXY is likely to be guided by the uncertainty over the US Nonfarm Payrolls (NFP). A preliminary estimate for the US NFP is 310k against the prior print of 428k.