The spot rate approaches the lower limit of its medium-term bearish channel at 1.5060 suggesting a rebound. However, a break of these levels will free a large potential and initiate a more violent bearish channel.
Technical indicators provide buy signals and, until the support is not broken, the assumption of a rebound is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
The spot rate is currently testing the lower limit of its channel, so we suggest 2 scenarios: the first one is the hypothesis of a rebound, then we recommend a buy on the level of 1.5060 with the 1st objective at 1.5120 and then at 1.5140. A break through 1.5040 will invalidate this scenario. The second scenario is a break of its support, then we recommend a sell stop, which means to sell the spot rate as soon as it has broken through its support of 1.5060 with the 1st objective at 1.5000 and then at 1.4980. A break through 1.5080 will invalidate this scenario.
