Ella 
The surprise was that the euro fell to a low of 1.0705 (we had expected sideways trading). Not surprisingly, this sharp decline has left the euro oversold. However, there are no signs of stabilization yet. From here, as long as EUR stays below 1.0760 (minor resistance at 1.0745), EUR could break below 1.0700 first before rebound risk increases. The next support at 1.0660 is unlikely to be threatened.
Next 1-3 weeks: Two days ago (market price 1.0775 on September 4) we pointed out that “downward momentum has temporarily increased, which may trigger the euro to fall to 1.0720.” We pointed out that “looking forward, the euro must break through and maintain Only below 1.0720 can the sustained decline be possible.” The euro closed at 1.0720 (-0.69%) after falling to a low of 1.0705 yesterday. The sharp increase in momentum suggests that the euro may continue to weaken. Watch the May low of 1.0635. As long as it stays below 1.0800 (previously ‘strong resistance’ at 1.0860), downside risk remains for the euro.
