24-hour view: The outsized selloff that sent USD plunging by 0.81% (NY close of 7.1736) came as a surprise (we were expecting USD to trade in a range). While severely oversold, the weakness in USD has not stabilized. In view of the oversold conditions, USD is unlikely to break the major support at 7.1500. On the upside, if USD breaks above 7.2200 (minor resistance is at 7.2000), it would mean that the USD weakness has stabilized. 

Next 1-3 weeks: Our latest narrative was from two days (19 Jul, spot at 7.1950). As highlighted, after dropping sharply over the past week, USD is unlikely to weaken further. For the time being, USD is likely to trade in a range, probably between 7.1500 and 7.2500.