The spot rate is currently testing the intermediate resistance of its medium-term bullish channel at 124.60 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 127.30.
Technical indicators provide buy signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
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 124.60 with the 1st objective at 124.00 and then at 123.80. A breakthrough of 124.80 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 124.60 with the 1st objective at 125.20 and then at 125.40. A breakthrough of 124.40 will invalidate this scenario.
