The spot rate is currently testing the intermediate support of its medium-term bullish channel at 101.80 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 101.60.
Technical indicators provide buy signals 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 increase in recent days. Stabilization is expected in the short term.
The spot rate is currently testing the intermediate support of its channel, we suggest 2 scenarios: the first one is the hypothesis of a rebound where we recommend a buy on the level of 101.80 with the 1st objective at 102.40 and then at 102.60. A breakthrough of 101.60 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 101.80 with the 1st objective at 101.20 and then at 101.00. A breakthrough of 101.60 will invalidate this scenario.