Ella 
The euro’s strong rally to a high of 1.1041 last Friday came as a surprise (we expect the euro to remain range-bound). A quick rise in the euro could test 1.1045 before the risk of a more sustained pullback increases. The key resistance at 1.1100 is not expected to be threatened. On the downside, a break below 1.0955 (minor support at 1.0975) would suggest some easing of current upward pressure.
After the euro fell to 1.0910, in our latest report last Thursday (3 August EUR/USD was at 1.0940), the euro could fall further to 1.0865. On Friday, the euro rebounded strongly, breaking the “strong resistance” proposed by the Bank at 1.1020. EUR/USD breaking “strong resistance” means that the weakness that started more than a week ago in the euro has stabilized. Currently, we expect the euro to trade between 1.0920 and 1.1100.
