FXStreet (Edinburgh) - The EUR/USD keeps the narrow range on Tuesday, navigating between 1.3420 and 1.3440 against a backdrop of thin trade and scarce data releases.

In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “charted an inside day yesterday and we suspect that the market is in consolidation mode having recently reached the 1.3424 200 week ma… A close below 1.3385 is expected to act as a catalyst on the downside and act as a trigger for a slide to the 1.3295November 2013 low en route to 1.3020/00, the 50% retracement of the move up from the 1.2042/July 2012 low”.

“Weakness below 1.3375/85 will imply that 1.30/1.32 is reachable in the next few weeks. From here, only a move above 1.3550 on a sustained basis relieves the bear pressure while a really through 1.37 is needed to turn the technical picture more constructive”, noted Shaun Osborne, Chief FX Strategist at TD Securities.

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