The spot rate is currently testing the intermediate support of its medium-term bearish channel at 100.80 suggesting a rebound. However, a break of these levels will free a large potential and reach the lower limit of its channel at 99.80.
Technical indicators provide sell signals. But until the support is not broken the assumption of a rebound 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 support of its channel, we suggest 2 scenarios: the first one is the hypothesis of a rebound where we recommend a buy on the level of 100.80 with the 1st objective at 101.40 and then at 101.60. A breakthrough of 100.60 will invalidate this scenario. The second scenario is a break of its support where we recommend a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 100.80 with the 1st objective at 100.20 and then at 100.00. A breakthrough of 101.00 will invalidate this scenario.
