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EUR/USD around 1.3170, Sentix eyed

FXstreet.com (Edinburgh) -The shared currency is navigating in a narrow range at the beginning of the trading week, with the EUR/USD gyrating around 1.3170/75 after climbing above 1.3180 overnight.

EUR/USD light calendar, low volatility?

Extremely light docket in the euro area today, with only the Investor Confidence tracked by the Sentix index due. Market consensus expects the index to extend the recent improvement to -2.9 in August. Across the Atlantic, Consumer Credit Change ($12.15 billion expected) will be in the limelight as well as a speech by Fed’s Williams. Analysts at TD Securities commented, “We don’t think the move down is complete but there is scope for a short-term correction if the market can get any sort of traction above 1.32… Given the well-defined trading range apparent over the past few months, we still rather think the EUR topped out around 1.34 in August and will head back towards 1.27/1.28 in the next few weeks. Modest EUR/USD rallies are a sell”.

EUR/USD levels to watch

At the moment the pair is losing 0.05% at 1.3172 and a breakdown of 1.3104 (50% of 1.2755-1.3453) would open the door to 1.3089 (low Jul.19) and then 1.3051 (low Jul.16). On the upside, the initial resistance aligns at 1.3189 (high Sep.6) followed by 1.3223 (high Sep.5) and finally 1.3237 (high Sep.2).

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