diff --git a/docxtpl/__init__.py b/docxtpl/__init__.py
index 6d245be..b91a670 100644
--- a/docxtpl/__init__.py
+++ b/docxtpl/__init__.py
@@ -18,13 +18,15 @@ try:
     from html import escape, unescape
 except ImportError:
     # cgi.escape is deprecated in python 3.7
+    # import escape and unescape methods for Python 2.7
     from cgi import escape
+    import HTMLParser
+    unescape = HTMLParser.HTMLParser().unescape
 import re
 import six
 import binascii
 import os
 import zipfile
-import sys
 
 NEWLINE_XML = '</w:t><w:br/><w:t xml:space="preserve">'
 NEWPARAGRAPH_XML = '</w:t></w:r></w:p><w:p><w:r><w:t xml:space="preserve">'
@@ -175,40 +177,35 @@ class DocxTemplate(object):
         """Escape strings for an XML Word document
         which may contain <, >, &, ', and ".
         """
-        def escape_recursively(d):
+        def escape_recursively(d, identities):
             """Escape string values of the passed :dict: `d` in-place
-            including nested dictionaries.
+            including nested dictionaries of any depth.
             """
-            nonlocal hash_values
-
-            for k, v in d.items():
+            for k, v in six.iteritems(d):
                 if isinstance(v, dict):
-                    hash_value = id(v)
-                    if hash_value not in hash_values:
-                        hash_values.add(hash_value)
-                        escape_recursively(v)
+                    identity = id(v)
+                    if identity not in identities:
+                        identities.add(identity)
+                        escape_recursively(v, identities)
                 else:
                     # Avoid dict, Listing, InlineImage, RichText, etc. classes
-                    #  by comparing v to str. Do not use try-except.
+                    #  by comparing `v` to `str`. Do not use try-except.
                     if isinstance(v, str):
                         # Unescape at first to avoid secondary escaping
                         d[k] = escape(unescape(v))
 
         # Avoid RecursionError (if back edges, i.e. cycles, exist)
-        # by using a set of hash values of iterated dictionaries.
-        hash_values = {id(context), }
+        # by using a set of unique identities of iterated dictionaries.
+        initial_identities = {id(context)}
 
-        escape_recursively(context)
+        escape_recursively(context, initial_identities)
 
     def render(self, context, jinja_env=None, autoescape=False):
-        if sys.version_info >= (3, 0) and autoescape:
+        if autoescape:
             self.escape_values(context)
-        else:
-            # Sorry folk, use awesome Python3 such as 3.6
-            pass
 
         # Body
-        xml_src = self.build_xml(context,jinja_env)
+        xml_src = self.build_xml(context, jinja_env)
 
         # fix tables if needed
         tree = self.fix_tables(xml_src)
diff --git a/tests/escape_auto.py b/tests/escape_auto.py
index d792fc2..ffa2b0a 100644
--- a/tests/escape_auto.py
+++ b/tests/escape_auto.py
@@ -3,10 +3,10 @@ from docxtpl import *
 tpl = DocxTemplate("test_files/escape_tpl_auto.docx")
 
 context = {'myvar': R('"less than" must be escaped : <, this can be done with RichText() or R()'),
-           'myescvar':'It can be escaped with a "|e" jinja filter in the template too : < ',
-           'nlnp' : R('Here is a multiple\nlines\nstring\aand some\aother\aparagraphs\aNOTE: the current character styling is removed'),
+           'myescvar': 'It can be escaped with a "|e" jinja filter in the template too : < ',
+           'nlnp': R('Here is a multiple\nlines\nstring\aand some\aother\aparagraphs\aNOTE: the current character styling is removed'),
            'mylisting': Listing('the listing\nwith\nsome\nlines\nand special chars : <>&'),
-           'autoescape': """These string should be auto escaped for an XML Word document which may contain <, >, &, ", and '."""
+           'autoescape': """<, >, &, ", and '."""
            }
 
 tpl.render(context, autoescape=True)
diff --git a/tests/test_files/escape_auto.docx b/tests/test_files/escape_auto.docx
index fc0e54c..c4ed5f0 100644
Binary files a/tests/test_files/escape_auto.docx and b/tests/test_files/escape_auto.docx differ
diff --git a/tests/test_files/escape_tpl_auto.docx b/tests/test_files/escape_tpl_auto.docx
index c6f7a6c..4d59e55 100644
Binary files a/tests/test_files/escape_tpl_auto.docx and b/tests/test_files/escape_tpl_auto.docx differ