The spot rate is currently testing the upper limit of its medium-term bearish channel at 101.90 suggesting a decline. However, a break of these levels will initiate a bullish channel.
Technical indicators provide buy 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 increase these days. Stabilization is expected in the short term.
The spot rate is currently testing the upper limit 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 101.90 with the 1st objective at 101.30 and then at 101.10. A breakthrough of 102.10 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 101.90 with the 1st objective at 102.50 and then at 102.70. A breakthrough of 101.70 will invalidate this scenario.
