Ella 
24-hour view: Yesterday we thought that the euro “could consolidate and trade between 1.0980-1.1055.” Our consolidation view is correct, even if it is trading in a narrower than expected range (1.0992/1.1045). The euro may consolidate further. However, a slight dip in the underlying tone suggests that the euro could trade in a lower range of 1.0970/1.1030.
Next 1-3 weeks outlook: We have been bearish on EUR since the middle of last week. After EUR fell to 1.0942 and rebounded, we highlighted yesterday (31 Jul at 1.1025 market) that “downward momentum has eased, but only a break of 1.1070 would suggest that the EUR will not fall further.” Our view remains unchanged. Looking ahead, it’s worth pointing out that if EUR breaks below 1.0942, there is fairly strong support near 1.0920.
