The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.5050 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 1.5180.
Technical indicators provide buy signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in the short term.
The spot rate is currently testing the intermediate resistance of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1.5050 with the 1st objective at 1.4990 and then at 1.4970. A breakthrough of 1.5070 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 1.5050 with the 1st objective at 1.5110 and then at 1.5130. A breakthrough of 1.5030 will invalidate this scenario.
