The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 128.20 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 129.50.
Technical indicators do not provide clear 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 128.20 with the 1st objective at 127.60 and then at 127.40. A breakthrough of 128.40 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 128.20 with the 1st objective at 128.80 and then at 129.00. A breakthrough of 128.00 will invalidate this scenario.
