The spot rate is currently testing the intermediate support of its medium-term trading range at 1.5070 suggesting a rebound. However, a break of this level will free a large potential and reach the lower limit of its trading range at 1.5030.
Technical indicators do not provide clear signals, but the rate approaches oversell zone and 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 trading range, we suggest 2 scenarios. The first one is the hypothesis of a rebound where we recommend a buy on the level of 1.5070 with the 1st objective at 1.5130 and then at 1.5150. A breakthrough of 1.5050 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 1.5070 with the 1st objective at 1.5010 and then at 1.4990. A breakthrough of 1.5090 will invalidate this scenario.