The spot rate is currently testing the upper limit of its short-term trading range at 1.3430 suggesting a decline. However, a break of these levels will initiate a violent bullish channel and will allow it to reach the upper limit of its medium term bearish channel at 1.3490.
Technical indicators do not provide clear signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
The spot rate is currently testing the upper limit 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 1.3430 with the 1st objective at 1.3370 and then at 1.3350. A breakthrough of 1.3450 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 1.3430 with the 1st objective at 1.3490 and then at 1.3510. A breakthrough of 1.3410 will invalidate this scenario.