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EUR/USD capped by 1.34, busy week ahead

FXStreet (Bali) - EUR/USD continues confined in a 1 cent range between 1.3335-40 and 1.3440, with current price at 1.3390 -barely changed from the last NY close, ahead of key risk events this week.

Jim Langlands, Founder at FXCharts, notes: "Despite the recent speculation as to when the Fed may begin to raise rates, the recent run of soft US data appears to suggest that there is little reason for Janet Yellen to act any time soon, which will keep the dollar under some pressure. We get the US CPI (Tuesday), the FOMC Minutes (Wed) and then the Jackson Hole Economic Symposium on Friday, so we will find out more as the week wears on, and thus, “Fed-watching” is going to be the main game for the coming week."

Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart presents a mild positive tone, with price above its moving averages yet indicators turning south in positive territory. In the 4 hours chart technical readings favor the downside, as per momentum crossing its midline south and with 20 SMA flat around 1.3370, acting as immediate short term support. The roof of the range is set at 1.3440, so it will take an advance beyond it to see current negative tone reversing, at least in the short term."

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