FXStreet (Córdoba) - The EUR/USD has spent most of the day in a very narrow range in the absence of news or economic developments.

With only second-tier data coming from the Eurozone and the US, the EUR/USD was confined to a phase of consolidation between 1.3415-1.3430, unable to define a clear direction.

Last Friday, below expectations US nonfarm payrolls saw the pair climbing to a high of 1.3444 but lacked momentum to extend gains. The key event this week will be the European Central Bank monetary policy decision Thursday, although it could turn into a non-event in the absence of surprises.

EUR/USD technical outlook

“The EUR/USD maintained a tight range through the first two sessions of the day, heading into US opening capped below the 1.3430 Fibonacci level, and with the short term technical picture presenting a mild bearish tone, with the hourly chart showing price around a flat 20 SMA and indicators below their midlines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart indicators are losing their bullish strength but hold in positive territory, while price holds above a flat 20 SMA currently around 1.3400. Some follow through above 1.3440 is required to confirm an upward continuation, as the level limited advances for most of last week”.

Bednarik locates next support levels at 1.3405, 1.3370 and 1.3335, while she places resistances at 1.3440, 1.3475 and 1.3500.

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