Ella 
24-hour view: We were wrong to expect the euro to fall to 1.1010, as it briefly surged to 1.1106 during the North American session. The current move could be part of a consolidation. Today we expect the euro to trade sideways between 1.1045/1.1110.
Next 1-3 weeks: We turned bearish on EUR last Friday (21 Jul) when it traded at 1.1135. That’s when we pointed out that “any decline is likely to face strong support at 1.1010.” After the euro fell to 1.1019, we highlighted yesterday that the euro could fall below 1.1010. We also said that “the odds of EUR falling to the next important support level at 1.0965 are not high at the moment.” Our view remains unchanged. It’s worth pointing out, though, that downside momentum slowed a bit yesterday, when the euro closed higher for the first time in 6 sessions. Overall, only a break above 1.1135 (‘strong resistance’ level unchanged) would suggest that 1.1010 will not be reached.
