24-hour view: We highlighted last Friday that “USD weakness has not stabilized.” We added, “In view of the oversold conditions, USD is unlikely to break the major support at 7.1500.” However, USD did not weaken much as it traded between 7.1645 and 7.1923. The current price actions are likely part of a consolidation phase. Today, we expect USD to trade in a range of 7.1655/7.2000. 

Next 1-3 weeks: Our latest narrative was from last Wednesday (19 Jul, spot at 7.1950) still stands. As highlighted, after the recent sharp drop, 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.