The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.5270 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.5390.
Technical indicators provide sell signals and 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 a short term.
The spot rate is currently testing the intermediate resistance of its channel, then we suggest 2 scenarios: The first one is the hypothesis of a decline - then we recommend a sell on the level of 1.5270 with the 1st objective at 1.5210 and then at 1.5190. A break of 1.5290 will invalidate this scenario. The second scenario is a break of its resistance - then we recommend a “buy stop” that means to buy the spot rate as soon as it has broken through its resistance of 1.5270 with the 1st objective at 1.5330 and then at 1.5350. A break of 1.5250 will invalidate this scenario.
