24-hour view: Our expectations for EUR to dip to 1.1010 was incorrect as it popped briefly to a high of 1.1106 in NY trade. The current price movement are likely part of a consolidation. Today, we expect EUR to trade sideways in a range of 1.1045/1.1110. 

Next 1-3 weeks: We turned negative in EUR last Friday (21 Jul), when it was trading at 1.1135. At that time, we indicated that “any decline is likely to face solid support at 1.1010.”. After EUR dropped to a low of 1.1019, we highlighted yesterday that EUR could dip below 1.1010. We added, “The probability of EUR dropping to the next major support at 1.0965 is not high for now.” We continue to hold the same view. However, it is worth noting that after the rebound yesterday (EUR closed higher for the first time in 6 days), downward momentum has slowed somewhat. Overall, only a breach of 1.1135 (no change in ‘strong resistance’ level) would indicate that 1.1010 is not coming into view.