The spot rate has tested the upper limit of its medium term bullish channel and declined to the intermediate support of this one at 96.70 suggesting a rebound. However, a break through this level would enable the lower limit of the channel at 95.10.
Technical indicators do not provide clears signals but until the support is not broken, the assumption of a rebound is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
We can consider two scenarios: the first one is to buy at the level of 96.70 with the 1st objective at 97.30. The second one is a “sell stop” and sell as soon as the spot rate breaks through its support at 96.70 with the 1st objective at 96.40.
