The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.3380 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 1.3600.
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 stabilized showing a more regular volatility.
The spot rate is currently testing the intermediate resistance 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 1.3380 with the 1st objective at 1.3320 and then at 1.3300. A breakthrough of 1.3400 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 1.3380 with the 1st objective at 1.3440 and then at 1.3460. A breakthrough of 1.3360 will invalidate this scenario.