The spot rate is currently testing the intermediate resistance of its medium term bearish channel at 1.5320 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.5380.
Technical indicators provide sell signals and until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
The spot rate is currently testing the intermediate resistance of its channel, so we suggest 2 scenarios: The first one is the hypothesis of a decline - then we recommend a sell on the level of 1.5320 with the 1st objective at 1.5260 and then at 1.5240. A break through 1.5340 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 1.5320 with the 1st objective at 1.5380 and then at 1.5400. A break through 1.5300 will invalidate this scenario.
