24-hour view: We expected USD to trade in a range between 7.1830 and 7.2180 yesterday. USD then traded in a range of 7.1712/7.2074. The underlying tone has softened, and USD is likely to edge lower to 7.1500 today. The major support at 7.1300 is unlikely to come under threat. On the upside, if USD breaks above 7.2020 (minor resistance is at 7.1850), it would mean the current mild downward pressure has faded. 

Next 1-3 weeks: There is not much to add to our update from Wednesday (02 Aug, spot at 7.1800). As highlighted, the current price actions are likely part of a consolidation phase. For the time being, USD is likely to trade in a range of 7.1300/7.2450.