Bank of America Global Research discusses EUR/USD technical outlook and sees a scope for an extended downside towards 1.1240 in  the near-term.

Post ECB and US jobless claims on July 23, the euro fell and broke below trend line support. This implies a downtrend continuation pattern has formed.

Provided the downtrend continues, we can expect euro to retest the YTD low of 1.1325, the 1.13 figure and possibly the Fibonacci retracement at 1.1240," BofA notes.

We remain in favour of this short-term setup while euro remains below the high on July 23, which was 1.1436," BofA adds.