EUR/USD gyrates around 1.1200

FXStreet (Edinburgh) - EUR/USD keeps wobbling around the 1.1200 handle on Monday, recovering some ground after hitting 1.1180 earlier.

EUR/USD capped by 1.1260

The pair remains in a narrow range near 1.1200 the figure today, looking to consolidate the drop from session tops near 1.1260. Risk-on sentiment plus month-end flows continue to dominate the session today, in light of upcoming key events in both Euroland and the US economy.

Ahead in the week, the ECB will hold its monetary policy meeting. Despite markets have already ruled out any changes in the central bank’s policy, opinions amongst traders point to a dovish tone from the Council in light of the recent strength seen in the exchange rate and the stagnant levels of the inflation in the region.

EUR/USD key levels

At the moment the pair is advancing 0.22% at 1.1212 and a breakout of 1.1263 (high Aug.31) would target 1.1309 (high Aug.28) en route to 1.1364 (high Aug.27). On the flip side, the immediate support lines up at 1.1170 (low Aug.31) followed by 1.1156 (low Aug.28) and finally 1.1107 (low Aug.20).