The European currency remains in a narrow trading range just above the 1,07 level as investors avoid taking big bets.

Yesterday did not provide any surprises with the European currency defending for another day the level of 1,07 avoiding further losses.

A flurry of statements from officials from both Central Banks over the past two days have brought nothing new to the table with the bets on rate cuts prospects remaining broadly the same.

Although lately there has been a slight improvement in the economic environment of the Eurozone with several macroeconomic indicators moving slightly higher the interest rate gap in favor of the US dollar is weighing on the European currency and the changes in momentum with a strong bullish scenario for the European currency is currently a difficult case.

Today's agenda is poor with no major macroeconomic news and no statements from Fed and ECB officials.

The most likely scenario is for the pair to remain extremely ''heavy'' with trading range narrowing near the 1,07 level as any significant strong direction and breaking of critical levels would be surprising.

Apart from some behaviors for scalping trading in a limited trading range environment I don't see any other consideration than to remain on hold.

My desire for a possible purchase of the European currency at the levels of 1,06 or a little below or correspondingly the purchase of the American dollar above the level of 1,10 remains my main thought.

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