EUR/USD confined in a range near 2-1/2 year highs

The EUR/USD pair oscillated within a narrow trading range through the mid-European session and was seen consolidating its recent up-move to 2-1/2 year highs.

Currently trading around 1.1940 area, the pair remained supported by persistent greenback selling bias in a relatively thin trade on Monday. In fact, the key US Dollar Index held weaker near YTD lows as market participants seemed disappointed from the Fed Chair Janet Yellen's speech at the Jackson Hole Symposium. 

Meanwhile, the ECB President Mario Draghi refrained from denting the prevalent positive sentiment around the shared currency by making no reference to the recent Euro appreciation and provided an additional boost to the shared currency.

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From a technical perspective, the pair broke out of a three-week old trading range and hence, today's price action would now be categorized as consolidative before the pair resumes with its upward trajectory.

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Today's US economic docket features the release of second-tier economic data - goods trade balance and wholesale inventories and is unlikely to provide any fresh impetus for the major ahead of this week's important releases, including the US GDP revision and the keenly watched NFP.

Technical outlook

On a sustained move beyond mid-1.1900s, the pair seems all set to aim towards surpassing the key 1.20 psychological mark en-route its next hurdle near the 1.2030-35 region. 

Meanwhile, on the downside, any pull-back below the 1.1900 handle now seems to find immediate support near 1.1870 horizontal level and any subsequent drop should now be limited at the trading range resistance break-point, now turned strong support, near the 1.1830 region.