The spot rate approaches the upper limit of its medium-term bearish channel at 1.3060 suggesting a decline. However, a break of these levels will initiate a violent bullish channel.
Technical indicators do not provide clear 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 upper limit of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline, then we recommend a sell on the level of 1.3060 with the 1st objective at 1.3000 and then at 1.2980 A break through 1.3080 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a buy stop, which means to buy the spot rate as soon as it breaks through its resistance of 1.3060 with the 1st objective at 1.3120 and then at 1.3140. A break through 1.3040 will invalidate this scenario.
