The spot rate is currently testing the intermediate resistance of its medium-term trading range at 1.3010 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 1.3070.
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 trading range, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1.3010 with the 1st objective at 1.2950 and then at 1.2930. A breakthrough of 1.3030 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 1.3010 with the 1st objective at 1.3070 and then at 1.3090. A breakthrough of 1.2990 will invalidate this scenario.
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