The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.2860 suggesting a decline. A break of these levels will let it reach the upper limit of its channel at 1.2920.
Bollinger bands have greatly tightened in recent days, showing a decline in volatility and the imminence of a violent movement.
<span style="Arial" ,"sans-serif";"="">The spot rate is currently testing the intermediate resistance of its channel, then we recommend 2 scenarios: The first one is the hypothesis of a decline, then we recommend a sell at the level of 1.2860 with the 1st objective at 1.2800 and then at 1.2780. A break through 1.2880 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 has broken through its resistance of 1.2860 with the 1st objective at 1.2920 and then at 1.2940. A break through 1.2840 will invalidate this scenario.<span id="pastemarkerend"> </span></span></p> <p></p>
